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

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

Mercer International Price Performance

NASDAQ MERC traded down $0.03 during trading hours on Thursday, reaching $1.70. The company’s stock had a trading volume of 860,265 shares, compared to its average volume of 679,600. The company has a debt-to-equity ratio of 4.30, a quick ratio of 1.68 and a current ratio of 3.01. The company’s 50-day moving average is $2.13 and its two-hundred day moving average is $2.48. Mercer International has a fifty-two week low of $1.48 and a fifty-two week high of $8.28. The stock has a market cap of $113.87 million, a PE ratio of -0.66 and a beta of 0.72.

Analyst Ratings Changes

A number of equities research analysts have weighed in on MERC shares. TD Securities lowered Mercer International from a “hold” rating to a “sell” rating and lifted their price objective for the company from $2.00 to $2.25 in a report on Wednesday, January 21st. Royal Bank Of Canada decreased their price target on Mercer International from $3.00 to $2.00 and set a “sector perform” rating on the stock in a research note on Monday, November 10th. TD Cowen lowered Mercer International from a “hold” rating to a “sell” rating and upped their price objective for the stock from $2.00 to $2.25 in a report on Wednesday, January 21st. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Mercer International in a report on Monday, December 29th. Three equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $3.10.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Gamco Investors INC. ET AL purchased a new stake in Mercer International in the 2nd quarter valued at approximately $244,000. Jump Financial LLC raised its holdings in shares of Mercer International by 340.6% in the second quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock worth $969,000 after acquiring an additional 214,008 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of Mercer International by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock valued at $1,111,000 after acquiring an additional 14,603 shares in the last quarter. Gabelli Funds LLC purchased a new stake in shares of Mercer International in the second quarter valued at $1,804,000. Finally, Millennium Management LLC boosted 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 acquiring an additional 137,906 shares during the last quarter. 85.79% of the stock is owned by hedge funds and other institutional investors.

Mercer International Company Profile

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.