There May Be Some Bright Spots In HAKI Safety's (STO:HAKI B) Earnings

Soft earnings didn't appear to concern HAKI Safety AB (publ)'s (STO:HAKI B) shareholders over the last week. We did some digging, and we believe the earnings are stronger than they seem.

See our latest analysis for HAKI Safety

How Do Unusual Items Influence Profit?

For anyone who wants to understand HAKI Safety's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by kr20m due 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, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect HAKI Safety 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 HAKI Safety's Profit Performance

Unusual items (expenses) detracted from HAKI Safety's earnings over the last year, but we might see an improvement next year. Because of this, we think HAKI Safety'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. If you want to do dive deeper into HAKI Safety, you'd also look into what risks it is currently facing. While conducting our analysis, we found that HAKI Safety has 5 warning signs and it would be unwise to ignore them.

This note has only looked at a single factor that sheds light on the nature of HAKI Safety's profit. But there are plenty of other ways to inform your opinion of a company. 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. 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.