Shopper Park Plus Nyilvánosan Muködo Részvénytársaság's (BUSE:SPLUS) Earnings Might Not Be As Promising As They Seem

Solid profit numbers didn't seem to be enough to please Shopper Park Plus Nyilvánosan Muködo Részvénytársaság's (BUSE:SPLUS) shareholders. We think that they might be concerned about some underlying details that our analysis found.

We've discovered 2 warning signs about Shopper Park Plus Nyilvánosan Muködo Részvénytársaság. View them for free.

In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. Shopper Park Plus Nyilvánosan Muködo Részvénytársaság expanded the number of shares on issue by 15% over the last year. Therefore, each share now receives a smaller portion of profit. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. You can see a chart of Shopper Park Plus Nyilvánosan Muködo Részvénytársaság's EPS by clicking here.

A Look At The Impact Of Shopper Park Plus Nyilvánosan Muködo Részvénytársaság's Dilution On Its Earnings Per Share (EPS)

As you can see above, Shopper Park Plus Nyilvánosan Muködo Részvénytársaság has been growing its net income over the last few years, with an annualized gain of 372% over three years. In contrast, earnings per share were actually down by 39% per year, in the exact same period. And at a glance the 98% gain in profit over the last year impresses. On the other hand, earnings per share are only up 47% in that time. Therefore, the dilution is having a noteworthy influence on shareholder returns.

Changes in the share price do tend to reflect changes in earnings per share, in the long run. So Shopper Park Plus Nyilvánosan Muködo Részvénytársaság shareholders will want to see that EPS figure continue to increase. However, if its profit increases while its earnings per share stay flat (or even fall) then shareholders might not see much benefit. For that reason, you could say that EPS is more important that net income in the long run, assuming the goal is to assess whether a company's share price might grow.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Shopper Park Plus Nyilvánosan Muködo Részvénytársaság.

How Do Unusual Items Influence Profit?

Alongside that dilution, it's also important to note that Shopper Park Plus Nyilvánosan Muködo Részvénytársaság's profit was boosted by unusual items worth €22m in the last twelve months. 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. And that's as you'd expect, given these boosts are described as 'unusual'. Shopper Park Plus Nyilvánosan Muködo Részvénytársaság had a rather significant contribution from unusual items relative to its profit to March 2025. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be.

Our Take On Shopper Park Plus Nyilvánosan Muködo Részvénytársaság's Profit Performance

In its last report Shopper Park Plus Nyilvánosan Muködo Részvénytársaság benefitted from unusual items which boosted its profit, which could make the profit seem better than it really is on a sustainable basis. And furthermore, it went and issued plenty of new shares, ensuring that each shareholder (who did not tip more money in) now owns a smaller proportion of the company. Considering all this we'd argue Shopper Park Plus Nyilvánosan Muködo Részvénytársaság's profits probably give an overly generous impression of its sustainable level of profitability. If you want to do dive deeper into Shopper Park Plus Nyilvánosan Muködo Részvénytársaság, you'd also look into what risks it is currently facing. Be aware that Shopper Park Plus Nyilvánosan Muködo Részvénytársaság is showing 2 warning signs in our investment analysis and 1 of those makes us a bit uncomfortable...

Our examination of Shopper Park Plus Nyilvánosan Muködo Részvénytársaság has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there is always more to discover if you are capable of focussing your mind on minutiae. 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.