Sappi (OTCMKTS:SPPJY) Shares Gap Down Following Weak Earnings

Key Points

• Sappi Ltd. gapped down significantly after announcing weaker than expected quarterly earnings, with shares opening at $1.50, down from a previous close of $1.68.
• The company's earnings per share (EPS) for the quarter was reported at ($0.04), missing the consensus estimate of $0.03 by ($0.07).
• Following the earnings report, Sappi's stock experienced a drop of 6.6%, reflecting investor concerns over its financial performance.

Shares of Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $1.68, but opened at $1.50. Sappi shares last traded at $1.51, with a volume of 4,975 shares trading hands.

The basic materials company reported ($0.04) earnings per share for the quarter, missing analysts' consensus estimates of $0.03 by ($0.07). Sappi had a net margin of 1.75% and a return on equity of 6.09%. The firm had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.35 billion.

Sappi Stock Performance

The stock's 50-day moving average is $1.79 and its 200-day moving average is $2.05. The stock has a market cap of $909.28 million, a price-to-earnings ratio of 9.55 and a beta of 0.76. The company has a current ratio of 1.38, a quick ratio of 0.68 and a debt-to-equity ratio of 0.60.

About Sappi

Sappi Limited, together with its subsidiaries, engages in the provision of materials made from woodfiber-based renewable resources in Europe, North America, and South Africa. The company manufacture and sells dissolving pulp, and wood and paper pulp; graphic papers, coated and uncoated papers, and casting and release papers; and packaging and specialty papers, including packaging and specialty papers, including flexible packaging papers, label papers, functional paper packaging products, containerboards, paperboards, silicone base papers, and dye sublimation papers.