Some May Be Optimistic About Shanghai Yct Electronics GroupLtd's (SZSE:301099) Earnings

Shanghai Yct Electronics Group Co.,Ltd's (SZSE:301099) stock was strong despite it releasing a soft earnings report last week. We think that investors might be looking at some positive factors beyond the earnings numbers.

Check out our latest analysis for Shanghai Yct Electronics GroupLtd

The Impact Of Unusual Items On Profit

Importantly, our data indicates that Shanghai Yct Electronics GroupLtd's profit was reduced by CN¥34m, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. If Shanghai Yct Electronics GroupLtd doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year.

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 Shanghai Yct Electronics GroupLtd's Profit Performance

Unusual items (expenses) detracted from Shanghai Yct Electronics GroupLtd's earnings over the last year, but we might see an improvement next year. Because of this, we think Shanghai Yct Electronics GroupLtd's earnings potential is at least as good as it seems, and maybe even better! Unfortunately, though, its earnings per share actually fell back over the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 3 warning signs that you should run your eye over to get a better picture of Shanghai Yct Electronics GroupLtd.

Today we've zoomed in on a single data point to better understand the nature of Shanghai Yct Electronics GroupLtd'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. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.

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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.