DuPont de Nemours, Inc. (NYSE:DD) recently posted some strong earnings, and the market responded positively. We have done some analysis, and we found several positive factors beyond the profit numbers.

See our latest analysis for DuPont de Nemours

The Impact Of Unusual Items On Profit

Importantly, our data indicates that DuPont de Nemours' profit was reduced by US$334m, 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. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect DuPont de Nemours to produce a higher profit next year, all else being equal.

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 DuPont de Nemours' Profit Performance

Because unusual items detracted from DuPont de Nemours' earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that DuPont de Nemours' statutory profit actually understates its earnings potential! And the EPS is up 61% 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. So while earnings quality is important, it's equally important to consider the risks facing DuPont de Nemours at this point in time. At Simply Wall St, we found 2 warning signs for DuPont de Nemours and we think they deserve your attention.

This note has only looked at a single factor that sheds light on the nature of DuPont de Nemours' 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 with high insider ownership.

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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.