The Strong Earnings Posted By HAEMATO (ETR:HAEK) Are A Good Indication Of The Strength Of The Business

The subdued stock price reaction suggests that HAEMATO AG's (ETR:HAEK) strong earnings didn't offer any surprises. Investors are probably missing some underlying factors which are encouraging for the future of the company.

See our latest analysis for HAEMATO

The Impact Of Unusual Items On Profit

For anyone who wants to understand HAEMATO's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by €1.7m due to unusual items. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. 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. If HAEMATO 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 HAEMATO's Profit Performance

Because unusual items detracted from HAEMATO's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Because of this, we think HAEMATO's earnings potential is at least as good as it seems, and maybe even better! And one can definitely find a positive in the fact that it made a profit this year, despite losing money 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. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example - HAEMATO 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 HAEMATO'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. 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.