Mercer International (NASDAQ:MERC) Releases Earnings Results, Misses Estimates By $0.04 EPS

Key Points

• Mercer International missed estimates, reporting EPS of ($0.78) vs. ($0.74) expected and revenue of $489.3M (vs. $493M), and showed weak profitability with a net margin of -26.65% and ROE of -81.16%.
• The stock is trading very low ($1.11) with a market cap of $74.35M and a 52-week range of $1.00–$4.47, while analysts have a consensus rating of "Strong Sell" and an average price target of $2.25 amid recent downgrades and target cuts.
• Despite negative analyst sentiment, institutional ownership is high at 85.79% and several funds (e.g., Jump Financial, Gabelli, Millennium) have recently increased or initiated positions, indicating some institutional accumulation.

Mercer International (NASDAQ:MERC - Get Free Report) TSE: MRI.U released its earnings results on Thursday. The basic materials company reported ($0.78) earnings per share for the quarter, missing analysts' consensus estimates of ($0.74) by ($0.04), FiscalAI reports. Mercer International had a negative net margin of 26.65% and a negative return on equity of 81.16%. The firm had revenue of $489.30 million for the quarter, compared to analysts' expectations of $493.00 million.

Mercer International Price Performance

NASDAQ MERC remained flat at $1.11 on Thursday. 529,202 shares of the company's stock were exchanged, compared to its average volume of 576,386. The company has a debt-to-equity ratio of 23.58, a current ratio of 3.05 and a quick ratio of 1.79. The stock has a market cap of $74.35 million, a PE ratio of -0.15 and a beta of 0.53. The stock's 50 day moving average is $1.37 and its 200 day moving average is $1.81. Mercer International has a one year low of $1.00 and a one year high of $4.47.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. TD Cowen cut shares of Mercer International from a "hold" rating to a "sell" rating and lifted their target price for the company from $2.00 to $2.25 in a research note on Wednesday, January 21st. TD Securities cut shares of Mercer International from a "hold" rating to a "strong sell" rating in a research note on Wednesday, February 18th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Mercer International in a report on Friday, March 27th. Finally, Royal Bank Of Canada reduced their price target on shares of Mercer International from $2.00 to $1.25 and set a "sector perform" rating on the stock in a report on Thursday, April 16th. Two analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Strong Sell" and an average price target of $2.25.

Institutional Trading of Mercer International

Institutional investors and hedge funds have recently bought and sold shares of the stock. Gamco Investors INC. ET AL bought a new stake in Mercer International in the 2nd quarter valued at $244,000. Jump Financial LLC increased its holdings in Mercer International by 340.6% in the 2nd quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company's stock valued at $969,000 after acquiring an additional 214,008 shares during the last quarter. Gabelli Funds LLC bought a new stake in shares of Mercer International in the 2nd quarter worth about $1,804,000. Geode Capital Management LLC increased its holdings in shares of Mercer International by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company's stock worth $1,111,000 after buying an additional 14,603 shares during the last quarter. Finally, Millennium Management LLC increased its holdings in shares of Mercer International by 16.1% in the 3rd quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company's stock worth $2,866,000 after buying an additional 137,906 shares during the last quarter. 85.79% of the stock is currently owned by institutional investors.

About Mercer International

Mercer International Inc is a publicly traded pulp producer headquartered in Vancouver, British Columbia. Listed on the NASDAQ under the symbol MERC, the company specializes in the manufacture of Northern Bleached Softwood Kraft (NBSK) pulp and dissolving pulp for use in tissue, specialty paper and textile applications.

Mercer's core business activities include the operation of integrated pulp mills in North America and Europe. Its production portfolio encompasses NBSK pulp, renowned for its strength and versatility, and dissolving pulp, which serves as a key raw material in the manufacture of viscose, cellulose acetate and other specialty products.

The company's facilities are located in British Columbia and the U.S.

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