Investors Can Find Comfort In CEMEX. de's (BMV:CEMEXCPO) Earnings Quality

Investors were disappointed with the weak earnings posted by CEMEX, S.A.B. de C.V. (BMV:CEMEXCPO ). Despite the soft profit numbers, our analysis has optimistic about the overall quality of the income statement.

See our latest analysis for CEMEX. de

The Impact Of Unusual Items On Profit

To properly understand CEMEX. de's profit results, we need to consider the US$265m expense attributed to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect CEMEX. de 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 CEMEX. de's Profit Performance

Unusual items (expenses) detracted from CEMEX. de's earnings over the last year, but we might see an improvement next year. Because of this, we think CEMEX. de's earnings potential is at least as good as it seems, and maybe even better! On the other hand, its EPS actually shrunk in the last twelve months. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. You'd be interested to know, that we found 2 warning signs for CEMEX. de and you'll want to know about them.

This note has only looked at a single factor that sheds light on the nature of CEMEX. de's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. 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 that insiders are buying.

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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.