We Think You Can Look Beyond Vimi Fasteners' (BIT:VIM) Lackluster Earnings

The market for Vimi Fasteners S.p.A.'s (BIT:VIM) shares didn't move much after it posted weak earnings recently. We did some digging, and we believe the earnings are stronger than they seem.

View our latest analysis for Vimi Fasteners

The Impact Of Unusual Items On Profit

Importantly, our data indicates that Vimi Fasteners' profit was reduced by €369k, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Vimi Fasteners 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 Vimi Fasteners' Profit Performance

Unusual items (expenses) detracted from Vimi Fasteners' earnings over the last year, but we might see an improvement next year. Based on this observation, we consider it likely that Vimi Fasteners' statutory profit actually understates its earnings potential! And on top of that, its earnings per share have grown at 37% 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. If you want to do dive deeper into Vimi Fasteners, you'd also look into what risks it is currently facing. To that end, you should learn about the 5 warning signs we've spotted with Vimi Fasteners (including 1 which is concerning).

Today we've zoomed in on a single data point to better understand the nature of Vimi Fasteners' 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.