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We Like The Quality Of TAG Immobilien's (ETR:TEG) Earnings

We Like The Quality Of TAG Immobilien's (ETR:TEG) Earnings

Yahoo22-05-2025
Shareholders appeared to be happy with TAG Immobilien AG's (ETR:TEG) solid earnings report last week. According to our analysis of the report, the strong headline profit numbers are supported by strong earnings fundamentals.
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To properly understand TAG Immobilien's profit results, we need to consider the €118m 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. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. In the twelve months to March 2025, TAG Immobilien had a big unusual items expense. All else being equal, this would likely have the effect of making the statutory profit look worse than its underlying earnings power.
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.
As we mentioned previously, the TAG Immobilien's profit was hampered by unusual items in the last year. Because of this, we think TAG Immobilien's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! And it's also positive that the company showed enough improvement to book a profit this year, after losing money last year. 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 TAG Immobilien as a business, it's important to be aware of any risks it's facing. To that end, you should learn about the 3 warning signs we've spotted with TAG Immobilien (including 1 which is a bit concerning).
Today we've zoomed in on a single data point to better understand the nature of TAG Immobilien'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.
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.
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Christmas decorations come with a higher price tag this holiday season, thanks to tariffs.
Christmas decorations come with a higher price tag this holiday season, thanks to tariffs.

Los Angeles Times

time17 minutes ago

  • Los Angeles Times

Christmas decorations come with a higher price tag this holiday season, thanks to tariffs.

The Christmas decorations industry is hoping Donald Trump's tariffs don't ruin the holidays. The vast majority of artificial Christmas trees, lights and other decor are imported — mostly from China. Because seasonal items typically need to be shipped months ahead of time, stiffer levies have already added millions of dollars in unexpected costs. Jared Hendricks, founder and chief executive officer of Village Lighting Company in West Valley City, Utah, had to take a line of credit leveraged by his house and office to help cover the $1.5 million in extra tariff costs. 'This is the most stressful year I've ever had,' said Hendricks, whose business sells lights, garlands and wreaths to professional installers and consumers. 'Over the last 20-some-odd years we've been through a lot, and I'm just kind of operating on faith that we'll find a way.' As Trump's ever-changing announcements on tariffs rolled in during the crucial shipping period for the industry, managers from across the country said they had to cancel shipments, cut down on orders and lay off workers to be able to pay the duties. Some expressed concerns about staying in business. For shoppers this holiday season, the shipping disruptions will mean less choice of products in the stores and prices that could be 10% to 20% higher than last year as a result of tariffs, said Jami Warner, executive director of the American Christmas Tree Association. An artificial tree that cost $299 in 2024, say, could fetch as much as $359 this year. 'This is a happy industry, and this is a pretty unhappy time to be in it,' Warner said. By the end of August, much of the year's imported Christmas trees and other decorations have been shipped, and retailers are busy preparing for the holiday season when they make the bulk of their sales. 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Craig Batten, president of S4 Lights in Toano, Virginia, said he has explored making Christmas lights in the U.S. but 'found that that was about impossible.' The only place to get many raw materials is in China and Southeast Asia, and finding enough workers here is a problem, he said. Batten added a line item to his invoices called 'tariff impact,' but he can't pass along the entire cost of the duties because that would raise prices too high. 'We're taking a hit, hoping that our existing inventory that we got pre-tariff helps offset the sticker shock,' he said. When tariffs on goods imported from China temporarily reached 145% in April, American Christmas LLC, stopped shipments and canceled 10% of orders, said CEO Dan Casterella. 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At Balsam Hill, one of the leading companies in the holiday-decorations business, the tariffs bill is expected to come to about $15 million this year — up from $1 million last year, according to Mac Harman, founder and CEO of parent company Balsam Brands. To preserve cash to pay tariffs, the California-based firm scaled back orders, cut 10% of its global workforce of 350 employees, and froze raises and travel. But none of those actions come close to covering the cost of the tariffs, Harman said. The Christmas Trade Group, which represents small and medium-sized decoration firms, has requested a tariff exemption from the Trump administration. The group argues that domestic production is impossible, decorations are critical to holiday retail sales and that tariffs effectively force businesses to choose between operating at a loss and closing. Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation, said he's heard from a number of owners who are concerned about the viability of their business. The Christmas Trade Group has been encouraged by conversations it's had both with members of Congress and the administration, said Josh Fendrick, a principal with Williams & Jensen representing the coalition. The White House didn't say whether the exclusion request would be considered. There's a precedent for relief. In his first term, Trump delayed some tariffs on Chinese imports, saying at the time 'so it won't be relevant to the Christmas shopping season.' 'We sell joy, we sell memories,' said Chris Butler of National Tree Company in New Jersey. 'If any industry had a shot at getting some kind of exemption from the administration, it would be us.' Niquette writes for Bloomberg.

Appeals court throws out massive civil fraud penalty against President Trump
Appeals court throws out massive civil fraud penalty against President Trump

Los Angeles Times

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Appeals court throws out massive civil fraud penalty against President Trump

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The appeals court, the Appellate Division of the state's trial court, took an unusually long time to rule, weighing Trump's appeal for nearly 11 months after oral arguments last fall. Normally, appeals are decided in a matter of weeks or a few months. New York Attorney General Letitia James, who brought the suit on the state's behalf, has said the businessman-turned-politician engaged in 'lying, cheating, and staggering fraud.' Her office had no immediate comment after Thursday's decision. Trump and his co-defendants denied wrongdoing. In a six-minute summation of sorts after a monthslong trial, Trump proclaimed in January 2024 that he was 'an innocent man' and the case was a 'fraud on me.' He has repeatedly maintained that the case and verdict were political moves by James and Engoron, who are both Democrats. 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Walmart reports solid sales and profits as tariffs worry some consumers
Walmart reports solid sales and profits as tariffs worry some consumers

Los Angeles Times

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Walmart reports solid sales and profits as tariffs worry some consumers

Walmart Inc. reported increases in second-quarter profits and sales Thursday as it pulls in shoppers seeking low prices for groceries and other essentials to offset worries that new U.S. tariffs may make a variety of goods more expensive. The nation's largest retailer also increased its annual profit and sales outlook. Quarterly results from Walmart and other major U.S. retailers this week offer clues on how consumers are reacting to the possibility of tariff-related price increases. The company, based in Bentonville, Arkansas, said it earned $7.03 billion, or 88 cents per share, for the three-month period that ended ended July 31. That compares with $4.50 billion, or 56 cents per share, a year ago. Sales rose nearly 5% to $177.4 billion. A growing list of companies, including Procter & Gamble, Cosmetics, Black & Decker and Ralph Lauren, told investors in recent weeks that they planned to or already had raised prices because of tariffs, though modestly. None of that has derailed consumer spending. Shoppers spent at a healthy pace in July, particularly at the nation's auto dealerships, as signs emerged that President Donald Trump's trade policies were taking a toll on jobs. Some of that spending may have been shoppers buying furniture and other imported items to get ahead of expected price increases, analysts said. On Tuesday, Home Depot, the nation's largest home improvement retailer, reported improved sales during its latest quarter as consumers remained focused on smaller projects. Like Walmart, Home Depot's performance missed Wall Street's expectations. The Atlanta-based company also said shoppers should expect modest price increases in some categories as a result of additional costs from tariffs, which are taxes on imports. Target, which has been struggling to reverse a persistent sales malaise, reported another quartely decline in comparable sales and said Wednesday that it would only raise prices as a last resort. Chief Commercial Officer Rick Gomez said shoppers are looking for value and so the discounter would focus more on its store label brands, which tend to be less expensive than national labels. But it's Walmart that serves as a barometer of spending given its outsized power in American retailing. The company maintains that 90% of U.S. households rely on Walmart for a range of products, and more than 150 million customers shop on its website or in its stores every week. Walmart said in May that prices had started to increase in late April and got higher in May. But it said Thursday that it had introduced 7,400 price rollbacks, or temporary discounts, across the aisles in the latest quarter. Walmart's U.S. comparable sales — those from established physical stores and online channels — rose 4.6% in the quarter, slightly higher than the 4.5% gain in the fiscal first quarter. Groceries and health and wellness items fueled the growth, the company said., the company said. Global e-commerce sales rose 25%, above the 22% growth in the fiscal first quarter. Despite Walmart's solid quarter, its stock price was down more than 2% early Thursday as its earnings per share came in below what analysts had expected. Analysts were expecting 73 cents per share on sales of $175.93 billion for the quarter, according to FactSet. Per share results, excluding effects of charges related to certain legal matters and from business restructuring, was 68 cents, Walmart said. The company said Thursday it expects earnings per share to be in the range of 58 cents to 60 cents for the current quarter. Analysts expect 57 cents per share, according to FactSet. For the year, Walmart raised its per-share estimates to a range of $2.52 to $2.62, up from a previous estimate of a $2.50 to $2.60 range. It said 2025 sales are anticipated to increase 3.75% to 4.75%, more than it projected in May. D'Innocenzio writes for the Associated Press.

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