Some May Be Optimistic About NTT Data Intramart's (TSE:3850) Earnings

NTT Data Intramart Corporation's (TSE:3850) recent soft profit numbers didn't appear to worry shareholders, as the stock price showed strength. We think that investors might be looking at some positive factors beyond the earnings numbers.

We've discovered 1 warning sign about NTT Data Intramart. View them for free.

The Impact Of Unusual Items On Profit

To properly understand NTT Data Intramart's profit results, we need to consider the JP¥81m expense attributed to unusual items. 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. If NTT Data Intramart doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year.

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 NTT Data Intramart's Profit Performance

Unusual items (expenses) detracted from NTT Data Intramart's earnings over the last year, but we might see an improvement next year. Based on this observation, we consider it likely that NTT Data Intramart's statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. 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 NTT Data Intramart, you'd also look into what risks it is currently facing. While conducting our analysis, we found that NTT Data Intramart has 1 warning sign and it would be unwise to ignore this.

Today we've zoomed in on a single data point to better understand the nature of NTT Data Intramart'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.