There May Be Some Bright Spots In Bluestar Adisseo's (SHSE:600299) Earnings

Bluestar Adisseo Company's (SHSE:600299) recent soft profit numbers didn't appear to worry shareholders, as the stock price showed strength. Our analysis suggests that investors may have noticed some promising signs beyond the statutory profit figures.

View our latest analysis for Bluestar Adisseo

The Impact Of Unusual Items On Profit

For anyone who wants to understand Bluestar Adisseo's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by CN¥164m due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. 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. Bluestar Adisseo took a rather significant hit from unusual items in the year to December 2023. As a result, we can surmise that the unusual items made its statutory profit significantly weaker 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 Bluestar Adisseo's Profit Performance

As we mentioned previously, the Bluestar Adisseo's profit was hampered by unusual items in the last year. Because of this, we think Bluestar Adisseo's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! On the other hand, its EPS actually shrunk in the last twelve months. 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. If you'd like to know more about Bluestar Adisseo as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 3 warning signs for Bluestar Adisseo and you'll want to know about these.

This note has only looked at a single factor that sheds light on the nature of Bluestar Adisseo'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 that insiders are buying to be useful.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.