The 10-second takeaway
For the quarter ended June 30 (Q2), Mercer International missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Mercer International booked revenue of $258.7 million. The three analysts polled by S&P Capital IQ hoped for revenue of $272.7 million on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $335.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.01. The five earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. GAAP EPS of $0.03 for Q2 were 92% lower than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.3%, 510 basis points worse than the prior-year quarter. Operating margin was 9.0%, 670 basis points worse than the prior-year quarter. Net margin was 0.7%, 550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $258.7 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $0.33.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 157 members out of 171 rating the stock outperform, and 14 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Mercer International a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercer International is hold, with an average price target of $7.48.
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