Thessaloniki Water Supply & Sewerage Co's (ATH:EYAPS) Performance Is Even Better Than Its Earnings Suggest

Even though Thessaloniki Water Supply & Sewerage Co S.A.'s (ATH:EYAPS) recent earnings release was robust, the market didn't seem to notice. We think that investors have missed some encouraging factors underlying the profit figures.

Check out our latest analysis for Thessaloniki Water Supply & Sewerage Co

The Impact Of Unusual Items On Profit

To properly understand Thessaloniki Water Supply & Sewerage Co's profit results, we need to consider the €609k expense attributed 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. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Thessaloniki Water Supply & Sewerage Co to produce a higher profit next year, all else being equal.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Thessaloniki Water Supply & Sewerage Co.

Our Take On Thessaloniki Water Supply & Sewerage Co's Profit Performance

Because unusual items detracted from Thessaloniki Water Supply & Sewerage Co'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 Thessaloniki Water Supply & Sewerage Co's earnings potential is at least as good as it seems, and maybe even better! And it's also positive that the company showed enough improvement to book a profit this year, after 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. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. While conducting our analysis, we found that Thessaloniki Water Supply & Sewerage Co has 1 warning sign and it would be unwise to ignore it.

Today we've zoomed in on a single data point to better understand the nature of Thessaloniki Water Supply & Sewerage Co'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 with high insider ownership.

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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.