Mercer Intl Inc Up 14.65% To $9.47 After Earnings Beat

Friday, November 3, 2023 - Mercer Intl Inc (MERC) reported upside earnings and revenues today.

The consensus among analysts for Mercer Intl Inc was for an earnings per share (EPS) loss of $0.76 per share. The firm was able to surpass those projections, reporting an EPS loss of $0.39 per share, a positive surprise of $0.37 (49%). Profits fell 139% year-over-year after reporting an EPS of $1.00 in its year-ago quarter. The negative growth rate signals that the Basic Materials company isn't performing well amid current economic conditions.

Consensus analyst estimates were at $457.5 million. The Basic Materials company managed to surpass those expectations for its third quarter with revenue of $470.8 million, a positive revenue surprise of $13.3 million (3%). The firm managed negative 12% growth year-over-year due to Mercer Intl Inc reporting quarterly revenue of $532.8 million in its year-ago quarter. Mercer Intl Inc achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is up 14.65% to $9.47 after the report.

Mercer Intl Inc's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

Trading in the five days leading up to the report earned Mercer Intl Inc a Bullish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 21. Meanwhile, the average Wall Street analyst rated the stock a Hold.

Mercer International Inc operates in the pulp business and its operations are in Germany and Western Canada. The company is a producer of market northern bleached softwood kraft, or NBSK, pulp in the world. It is managed based on the primary products it manufactures: Pulp and Wood products. Mercer derives most of its revenue from the Pulp products.