Shareholders appeared to be happy with MasterCraft Boat Holdings, Inc.'s (NASDAQ:MCFT) solid earnings report last week. According to our analysis of the report, the strong headline profit numbers are supported by strong earnings fundamentals.

View our latest analysis for MasterCraft Boat Holdings

The Impact Of Unusual Items On Profit

To properly understand MasterCraft Boat Holdings' profit results, we need to consider the US$25m expense attributed to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. 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. Assuming those unusual expenses don't come up again, we'd therefore expect MasterCraft Boat Holdings 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 MasterCraft Boat Holdings' Profit Performance

Unusual items (expenses) detracted from MasterCraft Boat Holdings' earnings over the last year, but we might see an improvement next year. Based on this observation, we consider it likely that MasterCraft Boat Holdings' statutory profit actually understates its earnings potential! And the EPS is up 5.6% over 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'd like to know more about MasterCraft Boat Holdings as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 1 warning sign for MasterCraft Boat Holdings you should be aware of.

This note has only looked at a single factor that sheds light on the nature of MasterCraft Boat Holdings' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. 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.