Yahoo Finance We Think You Can Look Beyond Nutrien's (TSE:NTR) Lackluster Earnings
Soft earnings didn't appear to concern Nutrien Ltd.'s (TSE:NTR) shareholders over the last week. Our analysis suggests that while the profits are soft, the foundations of the business are strong.
See our latest analysis for Nutrien
The Impact Of Unusual Items On Profit
Importantly, our data indicates that Nutrien's profit was reduced by US$573m, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. 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 Nutrien doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year.
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 Nutrien's Profit Performance
Unusual items (expenses) detracted from Nutrien's earnings over the last year, but we might see an improvement next year. Based on this observation, we consider it likely that Nutrien's statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in 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. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. You'd be interested to know, that we found 4 warning signs for Nutrien and you'll want to know about them.
This note has only looked at a single factor that sheds light on the nature of Nutrien's 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.
