Mercer International (NASDAQ:MERC) Issues Quarterly Earnings Results, Misses Expectations By $0.56 EPS

Key Points

• Mercer International reported a quarterly loss of ($1.29) earnings per share, substantially missing analysts' expectations of ($0.73), with revenue falling to $453.52 million against a forecast of $514.46 million.
• Major shareholder Peter R. Kellogg increased his stake by purchasing 760,000 shares at $3.25 each, suggesting confidence in the company's future.
• Analysts have lowered price targets for Mercer International, with the average target now at $4.50, indicating a generally cautious outlook on the stock.

Mercer International (NASDAQ:MERC - Get Free Report) TSE: MRI.U announced its quarterly earnings results on Thursday. The basic materials company reported ($1.29) earnings per share for the quarter, missing the consensus estimate of ($0.73) by ($0.56), Zacks reports. Mercer International had a negative return on equity of 23.88% and a negative net margin of 5.60%. The business had revenue of $453.52 million during the quarter, compared to analysts' expectations of $514.46 million.

Mercer International Stock Performance

Mercer International stock traded down $0.09 during mid-day trading on Wednesday, reaching $3.16. 499,080 shares of the company traded hands, compared to its average volume of 540,291. The company has a debt-to-equity ratio of 3.42, a current ratio of 3.10 and a quick ratio of 1.73. Mercer International has a fifty-two week low of $2.83 and a fifty-two week high of $8.28. The company has a market capitalization of $211.32 million, a price-to-earnings ratio of -1.95 and a beta of 1.08. The firm's fifty day moving average is $3.63 and its two-hundred day moving average is $5.00.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on MERC shares. Raymond James Financial lowered their price target on shares of Mercer International from $7.00 to $5.00 and set a "market perform" rating for the company in a research report on Wednesday, April 30th. TD Securities decreased their target price on shares of Mercer International from $3.50 to $3.00 and set a "hold" rating for the company in a research report on Tuesday. Royal Bank Of Canada decreased their target price on shares of Mercer International from $7.00 to $5.00 and set a "sector perform" rating for the company in a research report on Tuesday, April 22nd. Finally, CIBC decreased their target price on shares of Mercer International from $5.00 to $4.00 and set a "neutral" rating for the company in a research report on Tuesday, July 22nd. Five equities research analysts have rated the stock with a hold rating, Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $4.25.

Insider Transactions at Mercer International

In other Mercer International news, major shareholder Peter R. Kellogg acquired 760,000 shares of the business's stock in a transaction dated Tuesday, July 22nd. The shares were purchased at an average price of $3.25 per share, for a total transaction of $2,470,000.00. Following the completion of the purchase, the insider directly owned 2,300,000 shares of the company's stock, valued at $7,475,000. The trade was a 49.35% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Carsten Merforth acquired 7,000 shares of the business's stock in a transaction dated Thursday, May 8th. The stock was acquired at an average price of $3.62 per share, for a total transaction of $25,340.00. Following the purchase, the chief operating officer directly owned 22,651 shares of the company's stock, valued at approximately $81,996.62. This trade represents a 44.73% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired 917,020 shares of company stock worth $3,050,546 over the last 90 days. 1.00% of the stock is currently owned by company insiders.

About Mercer International

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp worldwide. The company operates through two segments, Pulp and Solid Wood. It manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills.