Mitrajaya Holdings Berhad's (KLSE:MITRA) Earnings May Just Be The Starting Point

When companies post strong earnings, the stock generally performs well, just like Mitrajaya Holdings Berhad's (KLSE:MITRA) stock has recently. We have done some analysis, and we found several positive factors beyond the profit numbers.

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How Do Unusual Items Influence Profit?

To properly understand Mitrajaya Holdings Berhad's profit results, we need to consider the RM5.8m expense attributed 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. If Mitrajaya Holdings Berhad 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 Mitrajaya Holdings Berhad.

Our Take On Mitrajaya Holdings Berhad's Profit Performance

Unusual items (expenses) detracted from Mitrajaya Holdings Berhad's earnings over the last year, but we might see an improvement next year. Because of this, we think Mitrajaya Holdings Berhad's earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 56% over the last twelve months. 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 Mitrajaya Holdings Berhad, you'd also look into what risks it is currently facing. For example, we've discovered 3 warning signs that you should run your eye over to get a better picture of Mitrajaya Holdings Berhad.

This note has only looked at a single factor that sheds light on the nature of Mitrajaya Holdings Berhad'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.