Mercer International Goes Red
Mercer International (NAS: MERC) reported earnings on Feb. 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Mercer International beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Mercer International reported revenue of $297.8 million. The two analysts polled by S&P Capital IQ anticipated revenue of $290.4 million on the same basis. GAAP reported sales were 9.6% lower than the prior-year quarter's $329.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.02. The two earnings estimates compiled by S&P Capital IQ averaged $0.08 per share on the same basis. GAAP EPS were -$0.04 for Q4 versus $0.86 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 12.3%, 1,750 basis points worse than the prior-year quarter. Operating margin was 1.3%, 1,920 basis points worse than the prior-year quarter. Net margin was -0.8%, 1,520 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $291.2 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $1.16 billion. The average EPS estimate is $1.55.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 160 members out of 173 rating the stock outperform, and 13 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Mercer International a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercer International is outperform, with an average price target of $8.16.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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