Mercer International (NASDAQ:MERC) Announces Earnings Results

Mercer International (NASDAQ:MERC) (TSE:MRI.U) posted its quarterly earnings results on Thursday. The basic materials company reported ($1.39) earnings per share for the quarter, missing the consensus estimate of ($0.88) by ($0.51), Zacks reports. The company had revenue of $449.50 million for the quarter, compared to analyst estimates of $459.84 million. Mercer International had a negative return on equity of 64.20% and a negative net margin of 26.65%.

Mercer International Stock Performance

Shares of NASDAQ MERC opened at $1.78 on Friday. 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 firm has a market cap of $119.22 million, a price-to-earnings ratio of -0.24 and a beta of 0.72. The stock’s fifty day moving average price is $2.13 and its two-hundred day moving average price is $2.45. Mercer International has a one year low of $1.48 and a one year high of $8.28.

Wall Street Analysts Forecast Growth

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

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in MERC. Gabelli Funds LLC bought a new position in shares of Mercer International in the 2nd quarter valued at $1,804,000. Jump Financial LLC boosted its stake in Mercer International by 340.6% in the second quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company’s stock valued at $969,000 after buying an additional 214,008 shares in the last quarter. Millennium Management LLC grew its position in 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 acquiring an additional 137,906 shares during the last quarter. Gamco Investors INC. ET AL acquired a new position in Mercer International during the second quarter worth about $244,000. Finally, Geode Capital Management LLC raised 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. 85.79% of the stock is owned by 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.