NASDAQ$MERC
Mercer International Inc · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Mercer International Inc. experienced a net loss despite improved pulp pricing, impacted by planned maintenance downtime and a non-cash impairment.
Mercer International Inc. reported a net loss of $87.2 million for Q4 2023, influenced by a $33.7 million non-cash impairment related to the sandalwood business. Despite improved pulp pricing, the results were lower than the previous quarter due to planned maintenance and the absence of positive impacts from non-cash items and previous inventory sales.
- Operating EBITDA for Q4 2023 was $21.1 million, compared to $96.1 million in Q4 2022.
- Net loss for Q4 2023 was $87.2 million, or $1.31 per share, including a $33.7 million non-cash impairment.
- Pulp pricing improved in all markets during the quarter, leading to customer restocking.
- Mass timber business exhibited strong growth, securing major contracts and contributing positively to Operating EBITDA.
Headline financials
Revenue & EPS history
Mercer · Revenue · Quarterly
$470M
Revenue by segment
Mercer · $468M total across 2 segments · Q3 2023
- Pulp Segment$349M-23.6%74.5%
- Solid Wood Segment$120M+61.0%25.5%
Forward guidance
The company expects improved pulp pricing in 2024, especially in Europe, with modest increases expected in the first half of the year. U.S. lumber prices are expected to increase slightly in the first half of 2024, while European lumber prices are expected to remain relatively flat. Mass timber prices are expected to be stable in the first half of 2024.
Tailwinds
- Improved pulp pricing is expected in 2024, led by Europe.
- NBSK pulp prices increased to $1,350 per ADMT in Europe in January 2024.
- Modest increases in pulp prices are expected to continue in the first half of 2024 due to stronger demand.
- A modest increase in U.S. lumber prices is expected in the first half of 2024 due to increased housing activity and low customer inventory levels.
- Mass timber prices are expected to be stable in the first half of 2024.
Headwinds
- Prices in China and North America are expected to be generally stable in the first part of 2024 due to continued weak demand.
- NBHK pulp prices are expected to be stable in the first half of 2024.
- Lumber prices in Europe are expected to be relatively flat due to continued high interest rates and economic uncertainty.
- The company saw weakness in the lumber market as slightly higher prices in the U.S. were offset by lower prices in Europe.
- The company recognized a non‐cash impairment of $33.7 million against our sandalwood business in the fourth quarter of 2023
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 Q4 2023
+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
| Quarter | Report date | Reaction (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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