The market for Jiangsu Bide Science and Technology Co.,Ltd.'s (SHSE:605298) shares didn't move much after it posted weak earnings recently. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors.

The Impact Of Unusual Items On Profit

Importantly, our data indicates that Jiangsu Bide Science and TechnologyLtd's profit was reduced by CN¥5.8m, 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. 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. Assuming those unusual expenses don't come up again, we'd therefore expect Jiangsu Bide Science and TechnologyLtd to produce a higher profit next year, all else being equal.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Jiangsu Bide Science and TechnologyLtd.

Our Take On Jiangsu Bide Science and TechnologyLtd's Profit Performance

Because unusual items detracted from Jiangsu Bide Science and TechnologyLtd's earnings over the last year, you could argue that we can expect an improved result in the current quarter. Because of this, we think Jiangsu Bide Science and TechnologyLtd's earnings potential is at least as good as it seems, and maybe even better! 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. If you want to do dive deeper into Jiangsu Bide Science and TechnologyLtd, you'd also look into what risks it is currently facing. When we did our research, we found 5 warning signs for Jiangsu Bide Science and TechnologyLtd (1 is significant!) that we believe deserve your full attention.

Today we've zoomed in on a single data point to better understand the nature of Jiangsu Bide Science and TechnologyLtd'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. 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.