Mercer International (NASDAQ:MERC) Posts Earnings Results, Misses Expectations By $0.04 EPS

Mercer International (NASDAQ:MERC) (TSE:MRI.U) posted its earnings results on Thursday. The basic materials company reported ($0.78) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.74) by ($0.04), FiscalAI reports. Mercer International had a negative return on equity of 81.16% and a negative net margin of 26.65%.The business had revenue of $489.30 million during the quarter, compared to the consensus estimate of $493.00 million.

Mercer International Stock Performance

Shares of MERC stock remained flat at $1.11 during trading hours on Thursday. 529,202 shares of the company were exchanged, compared to its average volume of 576,386. Mercer International has a 52-week low of $1.00 and a 52-week high of $4.47. The company has a debt-to-equity ratio of 23.58, a current ratio of 3.05 and a quick ratio of 1.79. The stock’s 50-day moving average is $1.37 and its 200-day moving average is $1.81. The company has a market cap of $74.35 million, a price-to-earnings ratio of -0.15 and a beta of 0.53.

Hedge Funds Weigh In On Mercer International

Large investors have recently made changes to their positions in the company. Millennium Management LLC boosted its stake in shares of Mercer International by 16.1% during the 3rd quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company’s stock worth $2,866,000 after purchasing an additional 137,906 shares during the period. Gabelli Funds LLC purchased a new position in shares of Mercer International during the 2nd quarter worth about $1,804,000. Geode Capital Management LLC boosted its stake in shares of Mercer International by 2.7% during the 4th quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company’s stock worth $1,111,000 after purchasing an additional 14,603 shares during the period. Jump Financial LLC boosted its stake in shares of Mercer International by 340.6% during the 2nd quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock worth $969,000 after purchasing an additional 214,008 shares during the period. Finally, Gamco Investors INC. ET AL purchased a new position in shares of Mercer International during the 2nd quarter worth about $244,000. 85.79% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on MERC shares. TD Cowen downgraded shares of Mercer International from a “hold” rating to a “sell” rating and boosted their target price for the stock from $2.00 to $2.25 in a report on Wednesday, January 21st. Weiss Ratings restated a “sell (e+)” rating on shares of Mercer International in a report on Friday, March 27th. Royal Bank Of Canada reduced their target price on shares of Mercer International from $2.00 to $1.25 and set a “sector perform” rating on the stock in a report on Thursday, April 16th. Finally, TD Securities downgraded shares of Mercer International from a “hold” rating to a “strong sell” rating in a report on Wednesday, February 18th. Two investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Strong Sell” and an average price target of $2.25.

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.