We Think You Can Look Beyond 1&1's (ETR:1U1) Lackluster Earnings
Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.
How Do Unusual Items Influence Profit?
To properly understand 1&1's profit results, we need to consider the €281m expense attributed to unusual items. 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, after all, that's exactly what the accounting terminology implies. In the twelve months to June 2025, 1&1 had a big unusual items expense. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.
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 1&1's Profit Performance
As we mentioned previously, the 1&1's profit was hampered by unusual items in the last year. Based on this observation, we consider it possible that 1&1's statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. 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 want to do dive deeper into 1&1, you'd also look into what risks it is currently facing. For example - 1&1 has 2 warning signs we think you should be aware of.
This note has only looked at a single factor that sheds light on the nature of 1&1's 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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
26 minutes ago
- Yahoo
Solar panels that fit on your balcony or deck are gaining traction in the US
When Terrence Dwyer received a knock on his door and a flyer for a solar panel system small enough to fit on his deck, he was quickly sold. Solar systems that plug into regular wall outlets have been popular in Europe for years and are gaining traction in the U.S. for their affordability and simple installation. 'We thought absolutely, let's do this right away,' said Dwyer, who lives in Oakland, California. These small-scale solar systems could become attractive to more homeowners now that President Donald Trump's sweeping budget-and-policy package will scrap residential rooftop solar tax credits and may shift interest to cheaper alternatives. Even before the GOP bill passed, manufacturers of the smaller systems known as plug-in or balcony solar were seeing increased demand and other positive signs such as a new Utah law streamlining regulations for homeowners to buy and install them. The systems about the size of a door haven't been as widely adopted in the U.S. as in Europe because of lack of awareness, patchwork utility rules and limited availability. The $2,000 plug-in solar system installed on Dwyer's backyard deck in March consists of two 400 watt panels, an inverter, a smart meter and a circuit breaker. It saves him around $35 per month on his power bill because he is consuming less energy from the grid, but he said reducing his carbon footprint was his primary motivation. 'We like the environmental benefits of solar and wanted to engage with solar in some fashion,' Dwyer said. Had Dwyer opted for rooftop solar, he would have paid $20,000 for the system and $30,000 to upgrade his roof to support the panels. Installing a plug-in solar system requires some homework. What power companies let customers do with energy-generating equipment varies, which is why prospective purchasers should check their utility's policies first. Building permits might be required depending on the municipality. Some systems can be self-installed, while others may require an electrician. For example, some kits have meters that must be wired into a home's circuit breaker. Removing hurdles for plug-in solar Dwyer bought his system from Bright Saver, a nonprofit company in California that advocates for plug-in solar. In addition to the type Dwyer bought, the company also offers a smaller model costing $399 that recently sold out in six days. 'The interest and demand have been overwhelming,' said Cora Stryker, a founder of Bright Saver. 'It is clear that we are hitting a nerve — many Americans have wanted solar for a long time but have not had an option that is feasible and affordable for them until now.' Kevin Chou, another founder of Bright Saver, said wider adoption of the systems in the U.S. has been hindered by utility policies that create uncertainty about whether they're allowed and a lack of state and local policies to make clear what rules apply. Some utilities contacted by The Associated Press say plug-in solar systems require the same interconnection applications as rooftop panels that send electricity back to the wider network. But Steven Hegedus, an electrical engineering professor at University of Delaware, said he doesn't understand why a utility would need to require an interconnection agreement for plug-in solar because, unlike rooftop systems, they are designed to prevent energy from flowing to the grid. Still, if in doubt, a customer should follow their utility's policy. During the early days of plug-in solar's growth, some opposition from utilities is likely since customers are buying less energy, said Robert Cudd, a research analyst at the California Center for Sustainable Communities at the University of California, Los Angeles. 'Utilities really prefer everyone being a predictable and generous consumer of the electricity they sell,' Cudd said. This year, Utah enacted a novel law supporting plug-in solar by exempting certain small-scale systems from interconnection agreements and establishing safety requirements such as being certified by a nationally recognized testing organization such as Underwriters Laboratories. It appears to be the only state that's passed legislation supporting plug-in solar, according to the National Conference of State Legislatures. Republican state Rep. Raymond Ward, who sponsored the legislation, said the smaller systems allow people to better manage where their energy comes from and what they pay. 'Europe has these things. You can go buy them and they work and people want them. There is no reason why we shouldn't have them here in the United States,' Ward said. Bright Saver says they are lobbying other states for similar legislation. Alexis Abramson, dean of the University of Columbia Climate School, also applauded Utah's move. 'We actually need more localities, more states putting in allowances for this type of equipment,' she said. Plug-in solar availability and savings potential Some questions remain about how much customers could save. Severin Borenstein, a professor at the University of California, Berkeley's Haas School of Business, said the cost of some portable solar systems in the U.S. would make it hard for customers to come out ahead on their utility bills over the time they own them. He estimates the price of a $2,000 system in the U.S. works out to paying about $0.20 a kilowatt-hour over a 25-year period, which only saves people money if they have high utility costs. By comparison, Borenstein said the cost of systems sold in Europe, typically around $600, is equivalent to paying about $0.05 or $0.06 per kilowatt-hour over 25 years. Baltimore resident Craig Keenan said saving money was only part of why he installed one of the smaller Bright Saver models on his balcony in July. 'I'm interested in renewable energy because the amount of carbon emissions that we produce as a species is very, very unsustainable for our world,' he said. He said he expects the system will save him about $40 per year on utility bills, so it would take him about 10 years to recoup the cost of the kit. Keenan, a mechanical engineer, said installation took him 10 to 15 minutes. 'I think anyone can install this,' he said. 'It's not complicated. It doesn't require a technical degree.' Other companies selling plug-in solar kits include Texas-based Craftstrom. It has sold about 2,000 systems in the U.S. since 2021, mostly in California, Texas and Florida. The company's basic kits contain a solar panel that can fit in a backyard or other sunny space, along with equipment to maintain and regulate the flow of energy including an inverter and smart meter. Kenneth Hutchings, Craftstrom's chief revenue officer, said their U.S. sales rose this year even before the passage of the GOP tax bill, and he expects demand for plug-in solar to increase further as federal rooftop solar credits expire. The company advises customers to notify their power company before installation, but it has "never had any pushback from any utility,' said Michael Scherer, one of the founders of Craftstrom. China-based EcoFlow plans to begin selling plug-in solar systems in Utah and expand to other states if supportive legislation is passed, said Ryan Oliver, a company spokesperson. 'This is an example of where technology is sort of ahead of the regulators,' Oliver said, adding: 'As this rolls out to more of a nationwide product, we expect it will become more mainstream as people understand it better." ___ Associated Press video journalist Mingson Lau in Baltimore contributed to this report. ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at Isabella O'malley, The Associated Press Connectez-vous pour accéder à votre portefeuille
Yahoo
26 minutes ago
- Yahoo
Former Liverpool Star Heaps Praise on ‘Tremendous' Michael Edwards
Liverpool Transfer Masterclass Leaves Danny Murphy Full of Praise for Michael Edwards Liverpool's summer business has once again caught the eye, not just for the players brought in but for the impressive sums raised through sales. Michael Edwards, working alongside Richard Hughes, has overseen a series of high-value departures that have left the club in a strong financial position. Liverpool's Profitable Player Exits This summer has seen the departures of several key figures. Darwin Nunez and Luis Diaz, both influential last season, moved on after campaigns that did not fully hit the heights expected. Caoimhin Kelleher and Jarell Quansah have also been sold, contributing further to the club's growing transfer fund. With a couple of weeks still remaining in the transfer window, Arne Slot has room to add more new faces should he see fit. Having already delivered Liverpool the Premier League title in his first season, Slot now has the opportunity to refresh the squad while keeping the club's financial footing secure. Photo: IMAGO Danny Murphy Impressed by Diaz Transfer Fee One deal in particular has drawn admiration from former Liverpool midfielder Danny Murphy. The sale of Luis Diaz to a European rival brought in around £65.5 million, despite the Colombian having only two years left on his contract. Murphy did not hold back in his praise for Edwards. 'I think Michael Edwards and Richard Hughes have done a sterling job in that respect [the fees they've got for their sales],' he said. 'If you're good at what you do, then the players you then need to move on or sell on are always going to have good value. 'The money they got for Diaz is tremendous, really, when you think about it, he wouldn't sign a new deal, he's a quality player, people want him. And that gives you the capability to then do what they're doing now, so it's positive, I don't see any negatives with what's going on at all.' Michael Edwards' Proven Strategy at Liverpool Liverpool's ability to maximise transfer fees has been a defining feature of their recruitment policy over recent years. While not every departure has brought in a windfall, the success rate remains high. The club's approach of acquiring players at reasonable prices and selling them at their peak value has kept their net spend low, ensuring they remain competitive without overspending. Even after several high-profile exits, there is still talent in reserve. Harvey Elliott, Ben Doak and Kostas Tsimikas are among those who could command significant fees if needed. Edwards' track record suggests that, if they were to leave, Liverpool would secure strong returns. Sustainable Success under Arne Slot There is always a risk with significant player turnover, but Liverpool's meticulous planning minimises it. Each sale is carefully balanced with targeted recruitment, ensuring the squad remains competitive on all fronts. With Edwards guiding the club's transfer dealings and Slot building on last season's title-winning campaign, Liverpool appear well set to remain at the forefront of English football.
San Francisco Chronicle
27 minutes ago
- San Francisco Chronicle
Retail sales rise a solid 0.5% in July from June as shoppers appear to shrug off tariff pressures
NEW YORK (AP) — Shoppers spent at a healthy pace in July, particularly at the nation's auto dealerships, as they shrug off President Donald Trump's tariffs, which are starting to take a toll on jobs and lead to some price increases. Retail sales rose 0.5% last month, a slowdown from a revised 0.9% in June, which was revised upward, according to the Commerce Department's report released Friday. The pace in July matched economists' estimates. The increases followed two consecutive months of spending declines — a 0.1% pullback in April and a 0.9% slowdown in May. Excluding auto sales, which have been volatile since Trump imposed tariffs on many foreign-made cares, retail sales rose 0.3%. Auto sales rose 1.6%. They appear to have returned roughly to normalized spending after a surge in March and April as Americans attempted to get ahead of Trump's 25% duty on imported cars and parts and then a slump after that, according to Samuel Tombs, chief U.S. Economist at Pantheon Macroeconomics. The data showed solid spending across many retail sectors. Business at clothing stores was up 0.7% while online retailers saw a 0.8% increase. Business at home furnishings and furniture stores rose 1.4%. However, at electronics stores, sales were down 0.6%. And business at restaurants, the lone services component within the Census Bureau report and a barometer of discretionary spending, fell 0.4%, however as shoppers are focusing on eating at home to save money. Earlier this month, the Labor Department reported that U.S. hiring is slowing sharply as Trump's trade policies paralyze businesses and raise concerns about the outlook for the world's largest economy. U.S. employers added just 73,000 jobs last month, the Labor Department reported Aug 9, well short of the 115,000 expected. Another government report, issued Tuesday, on U.S. inflation showed that inflation was unchanged in July as rising prices for some imported goods were offset by declining gas and grocery prices, leaving overall prices modestly higher than a year ago. Consumer prices rose 2.7% in July from a year earlier, the same as the previous month and up from a post-pandemic low of 2.3% in April. Excluding the volatile food and energy categories, core prices rose 3.1%, up from 2.9% in June. Both figures are above the Federal Reserve's 2% target. On a monthly basis, prices rose 0.2% in July, down from 0.3% the previous month, while core prices ticked up 0.3%, a bit faster than the 0.2% in June. The new numbers suggest that slowing rent increases and cheaper gas are offsetting some impacts of Trump's sweeping tariffs. Many businesses are also likely still absorbing much of the cost of the duties. The consumer price figures likely reflect some impact from the 10% universal tariff Trump imposed in April, as well as higher duties on countries such as China and Canada. But that may change. U.S. wholesale inflation soared unexpectedly last month, signaling that Trump's taxes are pushing costs up and that higher prices for consumers may be on the way. The Labor Department reported Thursday that its producer price index — which measures inflation before it hits consumers— rose 0.9% last month from June, biggest jump in more than three years. Compared with a year earlier, wholesale prices rose 3.3%. The figures were much higher than economists had expected. The report comes as major retailers like Walmart and Target are slated to report their fiscal second-quarter earnings reports starting next week. Analysts will stud the reports to see how much retailers are absorbing the costs and how much they're passing on to shoppers. They'll also want to get insight into the state of consumer behavior heading into the critical fall and winter holiday seasons. In May, Walmart, the nation's largest retailer, warned t hat it had increased prices on bananas imported from Costa Rica from 50 cents per pound to 54 cents, but it noted that a large sting for shoppers wouldn't start to appear until June and July. The retailer's chief financial officer, John David Rainey, told The Associated Press that he thought car seats made in China that were selling for $350 at Walmart would likely cost customers another $100. But a growing list of companies including Procter & Gamble, Cosmetics, Black & Decker and Ralph Lauren told investors in recent weeks that they plan to or have already raised prices. Some, like eyewear retailer Warby Parker, are trying to be selective and are trying to focus on raising prices on just their premium products as a way to offset the higher costs from tariffs. Warby Parker has been shifting production away from China, where it plans to bring the percentage of all cost of goods sold by year-end under 15%. But it's also having to deal with higher tariffs costs in other countries. Warby Parker told analysts last Thursday that it plans to keep its $95 option. But it's increasing prices on select lens types. It also wants to cater more to older shoppers who need more expensive progressive lens. Warby Parker said that progressives, trifocals and bifocals make up roughly 40% of all prescription units sold industrywide. But just 23% of Warby Parker's business now is made up of progressives. Company executives said progressives are its highest priced offering and offer the highest profit margins. 'We were able to quickly roll out select strategic price increases that have benefited our growth,' Neil Blumenthal, co-chairman and co-founder and co-CEO of Warby Parker, told analysts last week.
