The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Mercer International missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share increased.
Gross margins grew, operating margins expanded, net margins contracted.
Mercer International logged revenue of $248.5 million. The two analysts polled by S&P Capital IQ predicted net sales of $272.3 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $297.8 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 -$0.07. The five earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.12 for Q4 versus -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.4%, 410 basis points better than the prior-year quarter. Operating margin was 3.8%, 250 basis points better than the prior-year quarter. Net margin was -2.7%, 190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $280.3 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $1.16 billion. The average EPS estimate is $0.55.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 151 members out of 165 rating the stock outperform, and 14 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Mercer International a green thumbs-up, and one give 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 $8.00.
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