There May Be Reason For Hope In Qatari Investors Group Q.P.S.C's (DSM:QIGD) Disappointing Earnings

Shareholders appeared unconcerned with Qatari Investors Group Q.P.S.C.'s (DSM:QIGD) lackluster earnings report last week. We did some digging, and we believe the earnings are stronger than they seem.

See our latest analysis for Qatari Investors Group Q.P.S.C

How Do Unusual Items Influence Profit?

For anyone who wants to understand Qatari Investors Group Q.P.S.C's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by ر.ق16m due 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 that's hardly a surprise given these line items are considered unusual. If Qatari Investors Group Q.P.S.C 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 Qatari Investors Group Q.P.S.C.

Our Take On Qatari Investors Group Q.P.S.C's Profit Performance

Because unusual items detracted from Qatari Investors Group Q.P.S.C's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that Qatari Investors Group Q.P.S.C's statutory profit actually understates its earnings potential! And the EPS is up 37% annually, over the last three years. 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. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example - Qatari Investors Group Q.P.S.C has 1 warning sign we think you should be aware of.

Today we've zoomed in on a single data point to better understand the nature of Qatari Investors Group Q.P.S.C'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. 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.