Stock Analysis

We Think You Can Look Beyond Atlantic Grupa d.d's (ZGSE:ATGR) Lackluster Earnings

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ZGSE:ATGR
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Shareholders appeared unconcerned with Atlantic Grupa d.d.'s (ZGSE:ATGR) lackluster earnings report last week. Our analysis suggests that while the profits are soft, the foundations of the business are strong.

Check out our latest analysis for Atlantic Grupa d.d

earnings-and-revenue-history
ZGSE:ATGR Earnings and Revenue History March 5th 2021

How Do Unusual Items Influence Profit?

To properly understand Atlantic Grupa d.d's profit results, we need to consider the Kn63m 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 Atlantic Grupa d.d 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 Atlantic Grupa d.d's Profit Performance

Because unusual items detracted from Atlantic Grupa d.d's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that Atlantic Grupa d.d's statutory profit actually understates its earnings potential! And on top of that, its earnings per share have grown at 24% per year over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. Obviously, we love to consider the historical data to inform our opinion of a company. But it can be really valuable to consider what other analysts are forecasting. Luckily, you can check out what analysts are forecasting by clicking here.

This note has only looked at a single factor that sheds light on the nature of Atlantic Grupa d.d's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. 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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About ZGSE:ATGR

Atlantic Grupa d.d

Atlantic Grupa d.d., together with its subsidiaries, engages in the research, development, production, and distribution fast moving consumer goods in Southeast Europe, the European markets, Russia, and the Commonwealth of Independent States.

Flawless balance sheet second-rate dividend payer.