Sappi (OTCMKTS:SPPJY) Announces Quarterly Earnings Results

Key Points

• Sappi reported weaker-than-expected quarterly results, posting earnings of ($0.08) per share versus the consensus estimate of ($0.04). Revenue also came in below forecasts at $1.33 billion compared with the expected $1.40 billion.
• The company showed continued profitability pressure, with a negative net margin of 12.70% and a negative return on equity of 4.61%.
• Analyst sentiment remains cautious: Zacks Research upgraded Sappi to “hold” from “strong sell,” and MarketBeat data indicates the stock currently carries a consensus Hold rating.

Sappi (OTCMKTS:SPPJY - Get Free Report) announced its quarterly earnings data on Thursday. The basic materials company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.04), Zacks reports. Sappi had a negative net margin of 12.70% and a negative return on equity of 4.61%. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.40 billion.

Sappi Trading Up 5.5%

Shares of SPPJY traded up $0.05 during mid-day trading on Friday, hitting $0.94. 479 shares of the company's stock traded hands, compared to its average volume of 11,300. The company has a quick ratio of 0.55, a current ratio of 1.18 and a debt-to-equity ratio of 0.65. Sappi has a 1 year low of $0.89 and a 1 year high of $2.25. The firm has a market capitalization of $567.70 million, a P/E ratio of -0.85 and a beta of 0.61. The business's 50-day moving average price is $1.06 and its 200-day moving average price is $1.26.

Wall Street Analyst Weigh In

Separately, Zacks Research upgraded Sappi from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. One research analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold".

Sappi Company Profile

Sappi Limited, trading on the OTCMKTS as SPPJY, is a global pulp and paper company headquartered in Johannesburg, South Africa. Originally established in 1936 as South African Pulp and Paper Industries, Sappi has grown into a diversified manufacturer of dissolving wood pulp, graphic papers, packaging and specialty papers. The company serves customers in over 150 countries and operates a network of mills and sales offices across three key regions: Europe, North America and South Africa.

Sappi’s product portfolio is organized into several main categories.

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