There May Be Some Bright Spots In Marsden Maritime Holdings' (NZSE:MMH) Earnings

Shareholders appeared unconcerned with Marsden Maritime Holdings Limited's (NZSE:MMH) lackluster earnings report last week. Our analysis suggests that while the profits are soft, the foundations of the business are strong.

Check out our latest analysis for Marsden Maritime Holdings

The Impact Of Unusual Items On Profit

For anyone who wants to understand Marsden Maritime Holdings' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by NZ$3.0m 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 that's hardly a surprise given these line items are considered unusual. Marsden Maritime Holdings took a rather significant hit from unusual items in the year to June 2024. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Marsden Maritime Holdings.

Our Take On Marsden Maritime Holdings' Profit Performance

As we mentioned previously, the Marsden Maritime Holdings' profit was hampered by unusual items in the last year. Based on this observation, we consider it possible that Marsden Maritime Holdings' statutory profit actually understates its earnings potential! Unfortunately, though, its earnings per share actually fell back over the last year. 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 Marsden Maritime Holdings, you'd also look into what risks it is currently facing. Be aware that Marsden Maritime Holdings is showing 4 warning signs in our investment analysis and 1 of those is concerning...

Today we've zoomed in on a single data point to better understand the nature of Marsden Maritime Holdings' 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.