Does The Street Have Mercer International Figured Out?

Checking expectations

Seth Jayson
Seth Jayson
Feb 10, 2013 at 12:00AM
Other

Mercer International (Nasdaq: MERC) is expected to report Q4 earnings on Feb. 13. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Mercer International's revenues will wane -8.6% and EPS will remain in the red.

The average estimate for revenue is $272.3 million. On the bottom line, the average EPS estimate is -$0.11.

Revenue details
Last quarter, Mercer International reported revenue of $286.7 million. GAAP reported sales were 3.0% higher than the prior-year quarter's $278.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.20. GAAP EPS were -$0.22 for Q3 against $0.20 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 14.4%, 1,360 basis points worse than the prior-year quarter. Operating margin was 3.2%, 1,390 basis points worse than the prior-year quarter. Net margin was -4.3%, 840 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.11 billion. The average EPS estimate is -$0.22.

Investor sentiment
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 $6.90.

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