We Think You Can Look Beyond Tigbur - Temporary Professional Personnel's (TLV:TIGBUR) Lackluster Earnings

The market was pleased with the recent earnings report from Tigbur - Temporary Professional Personnel Ltd. (TLV:TIGBUR), despite the profit numbers being soft. However, we think the company is showing some signs that things are more promising than they seem.

View our latest analysis for Tigbur - Temporary Professional Personnel

The Impact Of Unusual Items On Profit

To properly understand Tigbur - Temporary Professional Personnel's profit results, we need to consider the ₪8.1m expense attributed to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. If Tigbur - Temporary Professional Personnel doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Tigbur - Temporary Professional Personnel.

Our Take On Tigbur - Temporary Professional Personnel's Profit Performance

Because unusual items detracted from Tigbur - Temporary Professional Personnel'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 Tigbur - Temporary Professional Personnel's earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 52% annually, over the last three years. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. In terms of investment risks, we've identified 4 warning signs with Tigbur - Temporary Professional Personnel, and understanding them should be part of your investment process.

Today we've zoomed in on a single data point to better understand the nature of Tigbur - Temporary Professional Personnel'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. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.

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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.