Earnings Troubles May Signal Larger Issues for International Holding Company PJSC (ADX:IHC) Shareholders

A lackluster earnings announcement from International Holding Company PJSC (ADX:IHC) last week didn't sink the stock price. Our analysis suggests that along with soft profit numbers, investors should be aware of some other underlying weaknesses in the numbers.

Our free stock report includes 2 warning signs investors should be aware of before investing in International Holding Company PJSC. Read for free now.

How Do Unusual Items Influence Profit?

Importantly, our data indicates that International Holding Company PJSC's profit received a boost of د.إ5.6b in unusual items, over the last year. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. And that's as you'd expect, given these boosts are described as 'unusual'. We can see that International Holding Company PJSC's positive unusual items were quite significant relative to its profit in the year to March 2025. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of International Holding Company PJSC.

Our Take On International Holding Company PJSC's Profit Performance

As we discussed above, we think the significant positive unusual item makes International Holding Company PJSC's earnings a poor guide to its underlying profitability. As a result, we think it may well be the case that International Holding Company PJSC's underlying earnings power is lower than its statutory profit. Nonetheless, it's still worth noting that its earnings per share have grown at 36% over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example - International Holding Company PJSC has 2 warning signs we think you should be aware of.

This note has only looked at a single factor that sheds light on the nature of International Holding Company PJSC's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.