The Strong Earnings Posted By SPX Technologies (NYSE:SPXC) Are A Good Indication Of The Strength Of The Business

SPX Technologies, Inc.'s (NYSE:SPXC) strong earnings report was rewarded with a positive stock price move. Our analysis found some more factors that we think are good for shareholders.

See our latest analysis for SPX Technologies

How Do Unusual Items Influence Profit?

For anyone who wants to understand SPX Technologies' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by US$29m 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, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect SPX Technologies 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 SPX Technologies' Profit Performance

Unusual items (expenses) detracted from SPX Technologies' earnings over the last year, but we might see an improvement next year. Because of this, we think SPX Technologies' earnings potential is at least as good as it seems, and maybe even better! Better yet, its EPS are growing strongly, which is nice to see. 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. If you want to do dive deeper into SPX Technologies, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 2 warning signs with SPX Technologies, and understanding these should be part of your investment process.

Today we've zoomed in on a single data point to better understand the nature of SPX Technologies' 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.