NASDAQ$MERC

Mercer International Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Mercer International Inc. reported first quarter results and announced quarterly cash dividend.

Mercer International Inc. reported a net loss of $16.7 million for Q1 2024, with an Operating EBITDA of $63.6 million. The results were positively impacted by improved pulp and lumber pricing, lower fiber and production costs, and no planned maintenance downtime.

  • Operating EBITDA increased to $63.6 million, up from $27.5 million in Q1 2023.
  • Net loss was $16.7 million, including a non-cash loss on disposal of $23.6 million related to the Cariboo Pulp and Paper joint venture.
  • Pulp segment operating income increased by approximately 36% to $17.4 million.
  • Solid wood segment had an operating loss of $13.7 million, improved from $27.1 million in the same quarter of 2023.

Headline financials

Total Revenue

$553M

Previous: $523M+5.9%
EPS (adj)

-$0.25

Previous: -$0.46+45.7%
Capital Expenditures

-$18.5M

Previous: -$33.4M+44.8%
Free Cash Flow

-$35.2M

Previous: -$64M+45.1%
Net Income

-$16.7M

Previous: -$30.6M+45.4%
Operating Income

-$448K

Previous: -$20.1M+97.8%
Gross Profit

-$499M

Previous: -$509M+2.0%
Cash & Equivalents

$274M

Previous: $301M-8.7%
Total Assets

$2.61B

Previous: $2.74B-4.9%
Stock-Based Comp

$2.03M

Previous: $1.23M+65.5%

Revenue & EPS history

Mercer · Revenue · Quarterly

$553M

Q1 2024+5.9%vs Q1 2023
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Mercer · $468M total across 2 segments · Q3 2023

  • Pulp Segment
    $349M-23.6%
  • Solid Wood Segment
    $120M+61.0%

Forward guidance

The company expects pulp pricing to continue to improve in the second quarter of 2024, led by Europe and North America. Stable U.S. and European lumber prices are expected, while mass timber prices are anticipated to remain generally stable.

Tailwinds

  • Pulp pricing is expected to continue to improve, led by Europe and North America.
  • Stable pulp prices are expected in China.
  • Stable U.S. and European lumber prices are expected.
  • Mass timber prices are expected to remain generally stable.
  • Per unit fiber costs are expected to decrease in the second quarter of 2024 as a result of continued stable supply.

Headwinds

  • Lumber demand remains weak due to continued high interest rates and economic uncertainty.
  • The company is planning for a total of 35 days of maintenance downtime at its pulp mills in the second quarter of 2024.
  • Lumber prices are expected to be generally flat in the second quarter as demand continues to be impacted by high interest rates and economic uncertainty.
  • Weak economic conditions in Europe negatively impacted demand for pallets.
  • Per unit fiber costs for solid wood segment increased compared to the prior quarter due to strong demand for sawlogs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.3%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-1.7%

Avg return

30 days after

44%

28 / 64 earnings

Positive

+24.5%

Q4 2015

Best reaction

-15.5%

Q1 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.6%-26.9%-24.3%
Q3 2025-6.9%-6.3%-11.7%
Q1 2025-7.3%-20.0%-15.0%
Q4 2024+16.9%+22.8%-1.1%
Q3 2024-0.2%-2.3%-4.3%
Q2 2024+6.6%+0.8%-12.6%
Q1 2024-2.4%-3.3%-17.2%
Q4 2023+9.1%+7.7%+20.4%
Q3 2023+22.4%+19.3%+23.4%
Q2 2023+7.1%-4.9%+7.1%
Q1 2023-5.1%-3.6%-6.7%
Q4 2022-2.4%-5.6%-17.8%
Q3 2022-4.7%-11.6%-3.4%
Q2 2022+0.0%-5.4%+1.8%
Q1 2022+1.4%+3.5%-5.4%
Q4 2021+1.4%+4.6%+11.0%
Q3 2021+2.2%+0.3%+5.7%
Q2 2021-0.3%+0.9%+0.4%
Q1 2021-3.8%-5.8%-13.4%
Q4 2020-4.8%-2.2%+5.9%
Q3 2020+6.8%+16.5%+39.9%
Q2 2020-6.9%-10.5%+6.0%
Q1 2020-2.9%-13.9%-16.1%
Q4 2019-5.5%-4.5%-30.8%
Q3 2019+3.4%+6.9%+1.9%
Q2 2019-5.4%-10.6%-7.6%
Q1 2019+23.8%+23.8%+2.0%
Q4 2018-2.3%-3.7%-9.4%
Q3 2018-8.0%-13.0%-30.8%
Q2 2018+2.1%+7.2%+5.7%
Q1 2018+1.5%+7.1%+20.6%
Q4 2017+1.5%-2.3%-0.8%
Q3 2017-2.4%+2.8%+0.0%
Q2 2017-7.0%-9.0%-9.0%
Q1 2017-2.0%-5.2%-7.6%
Q4 2016+0.4%+4.2%+2.1%
Q3 2016+1.9%+1.3%+23.2%
Q2 2016-3.2%-2.7%+2.9%
Q1 2016-12.8%
Q4 2015+24.5%
Q3 2015+1.7%
Q2 2015-0.9%
Q1 2015-2.4%
Q4 2014+0.9%
Q3 2014+11.4%
Q2 2014+0.3%
Q1 2014+8.3%
Q4 2013+0.6%
Q3 2013+5.6%
Q2 2013+0.0%
Q1 2013+0.5%
Q4 2012-0.7%
Q3 2012-0.1%
Q2 2012+7.2%
Q1 2011-0.1%
Q1 2012+0.6%
Q4 2009-0.3%
Q4 2011-0.3%
Q3 2011-5.7%
Q3 2010-5.7%
Q2 2010-9.1%
Q2 2011-9.1%
Q4 2010-9.1%
Q1 2010-15.5%

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