There May Be Some Bright Spots In Datalogic's (BIT:DAL) Earnings

Soft earnings didn't appear to concern Datalogic S.p.A.'s (BIT:DAL) shareholders over the last week. We did some digging, and we believe the earnings are stronger than they seem.

View our latest analysis for Datalogic

How Do Unusual Items Influence Profit?

Importantly, our data indicates that Datalogic's profit was reduced by €1.5m, 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. In the twelve months to September 2024, Datalogic had a big unusual items expense. As a result, we can surmise that the unusual items made its statutory profit significantly weaker 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 Datalogic's Profit Performance

As we discussed above, we think the significant unusual expense will make Datalogic's statutory profit lower than it would otherwise have been. Because of this, we think Datalogic's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! On the other hand, its EPS actually shrunk in the last twelve months. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you'd like to know more about Datalogic as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 2 warning signs for Datalogic and we think they deserve your attention.

Today we've zoomed in on a single data point to better understand the nature of Datalogic's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. 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. 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.