In This Article:
Soft earnings didn't appear to concern National Fuel Gas Company's (NYSE:NFG) 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 National Fuel Gas
How Do Unusual Items Influence Profit?
Importantly, our data indicates that National Fuel Gas' profit was reduced by US$519m, due to unusual items, over the last year. 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. In the twelve months to September 2024, National Fuel Gas had a big unusual items expense. All else being equal, this would likely have the effect of making the statutory profit look worse than its underlying earnings power.
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 National Fuel Gas' Profit Performance
As we mentioned previously, the National Fuel Gas' profit was hampered by unusual items in the last year. Because of this, we think National Fuel Gas' underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! 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 National Fuel Gas, you'd also look into what risks it is currently facing. Our analysis shows 5 warning signs for National Fuel Gas (1 doesn't sit too well with us!) and we strongly recommend you look at these bad boys before investing.
This note has only looked at a single factor that sheds light on the nature of National Fuel Gas' 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 with high insider ownership.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.