We Think You Can Look Beyond Pfeiffer Vacuum Technology's (ETR:PFV) Lackluster Earnings

The market for Pfeiffer Vacuum Technology AG's (ETR:PFV) shares didn't move much after it posted weak earnings recently. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors.

View our latest analysis for Pfeiffer Vacuum Technology

The Impact Of Unusual Items On Profit

Importantly, our data indicates that Pfeiffer Vacuum Technology's profit was reduced by €8.3m, 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. 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. Assuming those unusual expenses don't come up again, we'd therefore expect Pfeiffer Vacuum Technology to produce a higher profit next year, all else being equal.

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 Pfeiffer Vacuum Technology's Profit Performance

Unusual items (expenses) detracted from Pfeiffer Vacuum Technology's earnings over the last year, but we might see an improvement next year. Because of this, we think Pfeiffer Vacuum Technology'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. 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 Pfeiffer Vacuum Technology as a business, it's important to be aware of any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Pfeiffer Vacuum Technology.

This note has only looked at a single factor that sheds light on the nature of Pfeiffer Vacuum Technology'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.

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This article by Simply Wall St is general in nature. 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.
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