We Think Terumo's (TSE:4543) Healthy Earnings Might Be Conservative

The stock was sluggish on the back of Terumo Corporation's (TSE:4543) recent earnings report. Along with the solid headline numbers, we think that investors have some reasons for optimism.This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.TSE:4543 Earnings and Revenue History November 20th 2025 How Do Unusual Items Influence Profit? Importantly, our data indicates that Terumo's profit was reduced by JP¥25b, 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. If Terumo doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. 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 Terumo's Profit Performance Unusual items (expenses) detracted from Terumo's earnings over the last year, but we might see an improvement next year. Based on this observation, we consider it likely that Terumo's statutory profit actually understates its earnings potential! And on top of that, its earnings per share have grown at 69% per year over the last three years. 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. Ultimately, this article has formed an opinion based on historical data. However, it can also be great to think about what analysts are forecasting for the future. So feel free to check out our free graph representing analyst forecasts. Today we've zoomed in on a single data point to better understand the nature of Terumo'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. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.