The 10-second takeaway
For the quarter ended March 31 (Q1), Mercer International met expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Mercer International recorded revenue of $287.3 million. The one analyst polled by S&P Capital IQ foresaw revenue of $286.5 million on the same basis. GAAP reported sales were 9.6% lower than the prior-year quarter's $317.9 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 three earnings estimates compiled by S&P Capital IQ averaged $0.11 per share. GAAP EPS of $0.03 for Q1 were 96% lower than the prior-year quarter's $0.73 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 18.8%, 830 basis points worse than the prior-year quarter. Operating margin was 7.5%, 880 basis points worse than the prior-year quarter. Net margin was 0.5%, 1,250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $279.8 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $1.13 billion. The average EPS estimate is $1.06.
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 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Mercer International a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercer International is outperform, with an average price target of $9.78.
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