Mercer International (NASDAQ:MERC) Announces Earnings Results, Misses Expectations By $0.18 EPS

Mercer International (NASDAQ:MERC) (TSE:MRI.U) posted its quarterly earnings results on Thursday. The basic materials company reported ($1.13) EPS for the quarter, missing the consensus estimate of ($0.95) by ($0.18), FiscalAI reports. The business had revenue of $460.28 million during the quarter, compared to analysts’ expectations of $476.00 million. Mercer International had a negative net margin of 28.51% and a negative return on equity of 136.20%.

Mercer International Price Performance

MERC traded down $0.00 during trading on Thursday, reaching $0.68. The company’s stock had a trading volume of 264,903 shares, compared to its average volume of 585,331. The company has a market cap of $45.23 million, a price-to-earnings ratio of -0.09 and a beta of 0.53. The firm has a fifty day simple moving average of $0.74 and a two-hundred day simple moving average of $1.24. Mercer International has a 1 year low of $0.53 and a 1 year high of $3.38. The company has a quick ratio of 1.22, a current ratio of 2.17 and a debt-to-equity ratio of 23.58.

Analysts Set New Price Targets

A number of brokerages have recently commented on MERC. Canadian Imperial Bank of Commerce dropped their price objective on shares of Mercer International from $1.50 to $1.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 21st. TD reaffirmed a “sell” rating on shares of Mercer International in a report on Tuesday, July 14th. Weiss Ratings reissued a “sell (e+)” rating on shares of Mercer International in a report on Wednesday, June 24th. Royal Bank Of Canada reduced their target price on Mercer International from $1.00 to $0.75 and set a “sector perform” rating for the company in a research note on Friday, July 17th. Finally, Wall Street Zen cut shares of Mercer International from a “sell” rating to a “strong sell” rating in a research note on Saturday, July 18th. Two investment analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, Mercer International has a consensus rating of “Strong Sell” and a consensus target price of $1.20.

Insider Transactions at Mercer International

In other news, major shareholder Peter R. Kellogg purchased 51,441 shares of the business’s stock in a transaction dated Friday, June 12th. The stock was acquired at an average price of $0.92 per share, for a total transaction of $47,325.72. Following the acquisition, the insider directly owned 1,385,672 shares of the company’s stock, valued at approximately $1,274,818.24. This represents a 3.86% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In the last three months, insiders acquired 1,383,743 shares of company stock valued at $1,264,565. 1.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Mercer International

Hedge funds have recently made changes to their positions in the stock. Geode Capital Management LLC lifted 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 purchasing an additional 14,603 shares in the last quarter. Millennium Management LLC grew its stake in shares of Mercer International by 16.1% in the third quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company’s stock valued at $2,866,000 after buying an additional 137,906 shares in the last quarter. Gabelli Funds LLC acquired a new stake in shares of Mercer International in the second quarter valued at $1,804,000. Gamco Investors INC. ET AL purchased a new stake in shares of Mercer International in the 2nd quarter valued at $244,000. Finally, Jump Financial LLC lifted its stake 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 worth $969,000 after acquiring an additional 214,008 shares in the last quarter. Hedge funds and other institutional investors own 85.79% of the company’s stock.

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.