Mercer International (NASDAQ:MERC) Posts Earnings Results

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 released its quarterly earnings data on Thursday. The basic materials company reported ($1.29) earnings per share for the quarter, missing analysts' consensus estimates of ($0.73) by ($0.56), Zacks reports. Mercer International had a negative net margin of 5.60% and a negative return on equity of 23.69%. The business had revenue of $453.52 million during the quarter, compared to the consensus estimate of $514.46 million.

Mercer International Stock Performance

Shares of NASDAQ MERC traded down $0.69 during mid-day trading on Friday, reaching $3.02. 3,572,948 shares of the company's stock were exchanged, compared to its average volume of 979,793. The firm has a market capitalization of $201.95 million, a price-to-earnings ratio of -1.85 and a beta of 1.08. Mercer International has a 52 week low of $2.83 and a 52 week high of $8.28. The company has a debt-to-equity ratio of 3.44, a current ratio of 3.25 and a quick ratio of 1.98. The firm has a 50-day moving average price of $3.64 and a two-hundred day moving average price of $5.05.

Insiders Place Their Bets

In other Mercer International news, major shareholder Peter R. Kellogg bought 760,000 shares of the stock in a transaction dated Tuesday, July 22nd. The shares were bought at an average cost of $3.25 per share, for a total transaction of $2,470,000.00. Following the purchase, the insider directly owned 2,300,000 shares of the company's stock, valued at approximately $7,475,000. This trade represents a 49.35% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Estrada Juan Carlos Bueno bought 8,000 shares of the stock in a transaction dated Wednesday, June 11th. The shares were acquired at an average price of $3.77 per share, for a total transaction of $30,160.00. Following the completion of the purchase, the chief executive officer directly owned 75,615 shares in the company, valued at approximately $285,068.55. This trade represents a 11.83% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders have purchased 926,811 shares of company stock valued at $3,085,834. 1.00% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. CIBC dropped their price objective on shares of Mercer International from $5.00 to $4.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 22nd. Royal Bank Of Canada dropped their price objective on shares of Mercer International from $7.00 to $5.00 and set a "sector perform" rating on the stock in a research note on Tuesday, April 22nd. TD Securities reduced their target price on shares of Mercer International from $5.50 to $4.00 and set a "hold" rating for the company in a research note on Monday, May 5th. Finally, Raymond James Financial reduced their target price on shares of Mercer International from $7.00 to $5.00 and set a "market perform" rating for the company in a research note on Wednesday, April 30th. Five investment analysts have rated the stock with a hold rating, According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $4.50.

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.

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