Duna House Holding Nyrt's (BUSE:DUNAHOUSE) Anemic Earnings Might Be Worse Than You Think

A lackluster earnings announcement from Duna House Holding Nyrt. (BUSE:DUNAHOUSE) last week didn't sink the stock price. Our analysis suggests that along with soft profit numbers, investors should be aware of some other underlying weaknesses in the numbers.

View our latest analysis for Duna House Holding Nyrt

The Impact Of Unusual Items On Profit

For anyone who wants to understand Duna House Holding Nyrt's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from Ft339m worth of unusual items. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. Which is hardly surprising, given the name. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is).

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 Duna House Holding Nyrt's Profit Performance

Arguably, Duna House Holding Nyrt's statutory earnings have been distorted by unusual items boosting profit. Therefore, it seems possible to us that Duna House Holding Nyrt's true underlying earnings power is actually less than its statutory profit. But at least holders can take some solace from the 40% per annum growth in EPS for the last three. 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. If you'd like to know more about Duna House Holding Nyrt as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 3 warning signs for Duna House Holding Nyrt you should be mindful of and 2 of them are a bit unpleasant.

Today we've zoomed in on a single data point to better understand the nature of Duna House Holding Nyrt'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 with significant insider holdings 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.