Tokyo Electric Power Company Holdings, Incorporated’s (TSE:9501) earnings announcement last week contained some soft numbers, disappointing investors. We did some digging and believe that things are better than they seem due to some encouraging factors.
Operating Revenue Or Not?
Most companies divide classify their revenue as either ‘operating revenue’, which comes from normal operations, and other revenue, which could include government grants, for example. Generally speaking, operating revenue is a more reliable guide to the sustainable revenue generating capacity of the business. However, we note that when non-operating revenue increases suddenly, it will sometimes generate an unsustainable boost to profit. It’s worth noting that Tokyo Electric…
