We Think That There Are More Issues For F.I.L.A. - Fabbrica Italiana Lapis ed Affini (BIT:FILA) Than Just Sluggish Earnings

Last week's earnings announcement from F.I.L.A. - Fabbrica Italiana Lapis ed Affini S.p.A. (BIT:FILA) was disappointing to investors, with a sluggish profit figure. We did some further digging and think they have a few more reasons to be concerned beyond the statutory profit.

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How Do Unusual Items Influence Profit?

For anyone who wants to understand F.I.L.A. - Fabbrica Italiana Lapis ed Affini's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from €44m 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. And that's as you'd expect, given these boosts are described as 'unusual'. We can see that F.I.L.A. - Fabbrica Italiana Lapis ed Affini's positive unusual items were quite significant relative to its profit in the year 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.

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 F.I.L.A. - Fabbrica Italiana Lapis ed Affini's Profit Performance

As we discussed above, we think the significant positive unusual item makes F.I.L.A. - Fabbrica Italiana Lapis ed Affini's earnings a poor guide to its underlying profitability. As a result, we think it may well be the case that F.I.L.A. - Fabbrica Italiana Lapis ed Affini's underlying earnings power is lower than its statutory profit. But the good news is that its EPS growth over the last three years has been very impressive. 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. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For instance, we've identified 4 warning signs for F.I.L.A. - Fabbrica Italiana Lapis ed Affini (1 is significant) you should be familiar with.

This note has only looked at a single factor that sheds light on the nature of F.I.L.A. - Fabbrica Italiana Lapis ed Affini'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.