Yasuda Logistics' (TSE:9324) Solid Earnings Are Supported By Other Strong Factors

Yasuda Logistics Corporation (TSE:9324) just reported healthy earnings but the stock price didn't move much. Our analysis suggests that investors might be missing some promising details.

Check out our latest analysis for Yasuda Logistics

How Do Unusual Items Influence Profit?

Importantly, our data indicates that Yasuda Logistics' profit was reduced by JP¥386m, 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. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. If Yasuda Logistics 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 Yasuda Logistics.

Our Take On Yasuda Logistics' Profit Performance

Because unusual items detracted from Yasuda Logistics' earnings over the last year, you could argue that we can expect an improved result in the current quarter. Because of this, we think Yasuda Logistics' earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 22% over 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'd like to know more about Yasuda Logistics as a business, it's important to be aware of any risks it's facing. When we did our research, we found 3 warning signs for Yasuda Logistics (2 can't be ignored!) that we believe deserve your full attention.

This note has only looked at a single factor that sheds light on the nature of Yasuda Logistics' 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.