The 10-second takeaway
For the quarter ended March 31 (Q1), Mercer International missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank to a loss. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Mercer International booked revenue of $254.0 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $268.8 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $291.1 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 -$0.12. The three earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share. Non-GAAP EPS were -$0.12 for Q1 versus $0.01 per share for the prior-year quarter. GAAP EPS were -$0.01 for Q1 versus $0.03 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 16.7%, 190 basis points worse than the prior-year quarter. Operating margin was 4.8%, 260 basis points worse than the prior-year quarter. Net margin was -0.2%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $285.2 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $1.13 billion. The average EPS estimate is $0.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 148 members out of 163 rating the stock outperform, and 15 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 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 $7.82.
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