Mercer International (NASDAQ:MERC) Shares Gap Up After Better-Than-Expected Earnings

Shares of Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $6.58, but opened at $6.98. Mercer International shares last traded at $7.40, with a volume of 489,487 shares traded.

The basic materials company reported $0.25 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.23. The firm had revenue of $488.41 million for the quarter, compared to analyst estimates of $497.00 million. Mercer International had a negative net margin of 9.33% and a negative return on equity of 17.62%.

Mercer International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 2nd. Investors of record on Wednesday, March 26th will be issued a dividend of $0.075 per share. This represents a $0.30 dividend on an annualized basis and a dividend yield of 4.03%. Mercer International’s dividend payout ratio is currently -10.60%.

Wall Street Analysts Forecast Growth

MERC has been the topic of several analyst reports. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $7.00 target price on shares of Mercer International in a report on Monday, November 4th. Raymond James lowered their price target on Mercer International from $7.50 to $7.00 in a report on Thursday, January 30th. Five investment analysts have rated the stock with a hold rating, Based on data from MarketBeat, Mercer International presently has an average rating of “Hold” and an average price target of $8.25.

Institutional Trading of Mercer International

A number of hedge funds have recently added to or reduced their stakes in MERC. KLP Kapitalforvaltning AS acquired a new position in Mercer International during the fourth quarter worth approximately $58,000. Entropy Technologies LP acquired a new position in Mercer International in the third quarter valued at $75,000. BNP Paribas Financial Markets increased its stake in Mercer International by 22.7% during the third quarter. BNP Paribas Financial Markets now owns 36,661 shares of the basic materials company’s stock worth $248,000 after acquiring an additional 6,786 shares during the last quarter. Quantbot Technologies LP increased its stake in Mercer International by 505.8% during the third quarter. Quantbot Technologies LP now owns 49,483 shares of the basic materials company’s stock worth $335,000 after acquiring an additional 41,315 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Mercer International by 1.7% in the 3rd quarter. Geode Capital Management LLC now owns 525,532 shares of the basic materials company’s stock worth $3,559,000 after purchasing an additional 8,957 shares during the period. 85.79% of the stock is owned by institutional investors and hedge funds.

Mercer International Stock Up 13.0 %

The company has a current ratio of 3.79, a quick ratio of 2.39 and a debt-to-equity ratio of 3.09. The firm has a market capitalization of $497.18 million, a price-to-earnings ratio of -2.65 and a beta of 1.29. The firm has a 50 day moving average price of $6.52 and a two-hundred day moving average price of $6.46.

Mercer International Company Profile

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp worldwide. The company operates through two segments, Pulp and Solid Wood. It manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills.