HBR Realty Empreendimentos Imobiliários' (BVMF:HBRE3) Shareholders May Want To Dig Deeper Than Statutory Profit

HBR Realty Empreendimentos Imobiliários S.A.'s (BVMF:HBRE3) healthy profit numbers didn't contain any surprises for investors. We believe that shareholders have noticed some concerning factors beyond the statutory profit numbers.

View our latest analysis for HBR Realty Empreendimentos Imobiliários

How Do Unusual Items Influence Profit?

For anyone who wants to understand HBR Realty Empreendimentos Imobiliários' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from R$274m worth of unusual items. 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 analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. HBR Realty Empreendimentos Imobiliários had a rather significant contribution from unusual items relative to its profit to December 2021. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On HBR Realty Empreendimentos Imobiliários' Profit Performance

As previously mentioned, HBR Realty Empreendimentos Imobiliários' large boost from unusual items won't be there indefinitely, so its statutory earnings are probably a poor guide to its underlying profitability. For this reason, we think that HBR Realty Empreendimentos Imobiliários' statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. The good news is that it earned a profit in the last twelve months, despite its previous loss. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example - HBR Realty Empreendimentos Imobiliários has 2 warning signs we think you should be aware of.

Today we've zoomed in on a single data point to better understand the nature of HBR Realty Empreendimentos Imobiliários' profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. 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 that insiders are buying 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.