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.

Sappi Ltd. (OTCMKTS:SPPJY - Get Free Report) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. 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) EPS for the quarter, missing the consensus estimate of $0.03 by ($0.07). Sappi had a net margin of 3.25% and a return on equity of 9.35%.

Sappi Trading Down 6.6%

The company has a market cap of $879.04 million, a P/E ratio of 5.23, a P/E/G ratio of 2.36 and a beta of 0.76. The business's 50-day moving average price is $1.81 and its 200 day moving average price is $2.08. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.68 and a current ratio of 1.38.

Sappi Company Profile

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.

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