Mercer International (NASDAQ:MERC) Announces Earnings Results, Misses Expectations By $3.73 EPS

Mercer International (NASDAQ:MERC) (TSE:MRI.U) issued its quarterly earnings results on Thursday. The basic materials company reported ($4.61) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.88) by ($3.73), FiscalAI reports. The company had revenue of $449.50 million during the quarter, compared to analysts’ expectations of $459.84 million. Mercer International had a negative return on equity of 37.38% and a negative net margin of 9.04%.

Mercer International Price Performance

NASDAQ MERC traded up $0.09 on Friday, reaching $1.79. 701,372 shares of the company’s stock traded hands, compared to its average volume of 677,749. The stock has a market cap of $119.56 million, a PE ratio of -0.70 and a beta of 0.72. The company has a debt-to-equity ratio of 4.30, a current ratio of 3.01 and a quick ratio of 1.68. The stock has a 50-day simple moving average of $2.13 and a 200 day simple moving average of $2.47. Mercer International has a 12 month low of $1.48 and a 12 month high of $8.28.

Institutional Investors Weigh In On Mercer International

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Gamco Investors INC. ET AL bought a new stake in shares of Mercer International during the 2nd quarter valued at $244,000. Jump Financial LLC lifted its position in Mercer International by 340.6% during 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 period. Geode Capital Management LLC boosted its stake in Mercer International by 2.7% during the fourth quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock worth $1,111,000 after acquiring an additional 14,603 shares in the last quarter. Gabelli Funds LLC purchased a new stake in Mercer International in the second quarter worth about $1,804,000. Finally, Millennium Management LLC increased its stake in shares of Mercer International by 16.1% during the third quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company’s stock valued at $2,866,000 after purchasing an additional 137,906 shares in the last quarter. 85.79% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

MERC has been the topic of several research analyst reports. TD Cowen cut shares of Mercer International from a “hold” rating to a “sell” rating and upped their price target for the stock from $2.00 to $2.25 in a report on Wednesday, January 21st. TD Securities lowered Mercer International from a “hold” rating to a “sell” rating and upped their target price for the stock from $2.00 to $2.25 in a research note on Wednesday, January 21st. Royal Bank Of Canada lowered their price target on Mercer International from $3.00 to $2.00 and set a “sector perform” rating on the stock in a report on Monday, November 10th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Mercer International in a research report on Monday, December 29th. Three investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Mercer International has an average rating of “Reduce” and an average price target of $3.10.

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.