Sappi (OTCMKTS:SPPJY) Shares Down 12.8% Following Weak Earnings

Key Points

• Shares fell 12.8% to $0.95 mid-day after the earnings release, with trading volume plunging to about 100 shares (a ~99% drop from average).
• Earnings missed expectations: Sappi reported EPS of ($0.08) versus analysts' ($0.04) estimate and posted a negative net margin (5.31%) and negative return on equity (2.34%).
• Zacks upgraded the stock from "strong sell" to "hold"; Sappi has a market cap of $574M, debt-to-equity of 0.65 and a negative P/E of -2.07, underscoring ongoing financial challenges.

Shares of Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) dropped 12.8% during mid-day trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $0.95 and last traded at $0.95. Approximately 100 shares traded hands during mid-day trading, a decline of 99% from the average daily volume of 8,201 shares. The stock had previously closed at $1.09.

The basic materials company reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.04). Sappi had a negative net margin of 5.31% and a negative return on equity of 2.34%.

Wall Street Analyst Weigh In

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

Sappi Stock Performance

The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.55 and a current ratio of 1.18. The company has a market capitalization of $574.35 million, a price-to-earnings ratio of -2.07 and a beta of 0.61. The stock's 50-day moving average price is $1.06 and its 200-day moving average price is $1.27.

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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