Mullen Group Ltd.'s (TSE:MTL) recent soft profit numbers didn't appear to worry shareholders, as the stock price showed strength. We think that investors might be looking at some positive factors beyond the earnings numbers.

Check out our latest analysis for Mullen Group

For anyone who wants to understand Mullen Group's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by CA$23m 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, after all, that's exactly what the accounting terminology implies. Assuming those unusual expenses don't come up again, we'd therefore expect Mullen Group 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.

Unusual items (expenses) detracted from Mullen Group's earnings over the last year, but we might see an improvement next year. Because of this, we think Mullen Group's earnings potential is at least as good as it seems, and maybe even better! Better yet, its EPS are growing strongly, which is nice to see. 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'd like to know more about Mullen Group as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 2 warning signs for Mullen Group you should know about.

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