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The Zacks Consensus Estimate for the MERC’s third-quarter earnings is currently pegged at $1.05 per share, indicating an improvement of 1% from the prior-year quarter. The estimate has remained unchanged over the past 30 days.
Q2 Performance
Mercer International had reported year-over-year improvement in earnings and revenues in the second quarter of 2022. Earnings beat the Zacks Consensus Estimate. MERC has a trailing four-quarter earnings surprise of 11.4%, on average.
Mercer International’s third quarter 2022 results are likely to reflect higher pulp prices driven by low customer inventory levels and supply constraints. Higher pulp prices and volumes are likely to be reflected in the third-quarter performance of the pulp segment. However, the Wood Produts segment’s results in the quarter are expected to reflect the impact of lower lumber prices.
The rising interest rate scenario and cost inflation has weighed on the housing market which impacted lumber demand, and consequently its prices. MERC is expected to have witnessed higher energy revenues in the quarter boosted by strong demand and higher prices.
The company had to contend with elevated costs for key inputs including fiber and chemicals as well as freight and energy prices through the quarter. Its surplus energy sales are likely to have acted as a strong hedge against higher energy prices, as seen over the past few quarters.
A Major Development During Q3
On Sep 30, MERC announced that it has completed the previously-announced acquisition of Holzindustrie Torgau (HIT), which owns, among other things, a timber processing and value-added pallet production facility in Torgau, Germany, and a wood-processing facility in Dahlen, Germany, that produces garden products.
This buyout will make MERC the largest German pallet producer with an annual lumber capacity of approximately 960 MMfbm. It also diversifies its product mix with the introduction of pallets and biofuels.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Mercer International this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Mercer International is 0.00%.
Zacks Rank: MERC currently carries a Zacks Rank of 3.
Price Performance
Image Source: Zacks Investment Research
Shares of Mercer International have gained 32.9% over the past year, against the industry's decline of 24.6%.
Stocks Poised to Beat Estimates
Here are some Basic Materials stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +8.13% and sports a Zacks Rank #1.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 9% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.81.
Koppers Holdings Inc. (KOP - Free Report) , expected to release earnings on Nov 3, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
FMC Corporation (FMC - Free Report) , scheduled to release earnings on Nov 1, has an Earnings ESP of +0.30%.
The Zacks Consensus Estimate for FMC's earnings for the third quarter is currently pegged at $1.11. FMC currently carries a Zacks Rank #3.
Image: Bigstock
What Awaits Mercer International (MERC) in Q3 Earnings?
Mercer International (MERC - Free Report) is scheduled to report third-quarter 2022 results on Oct 27, after market close.
Q3 Estimates
The Zacks Consensus Estimate for the MERC’s third-quarter earnings is currently pegged at $1.05 per share, indicating an improvement of 1% from the prior-year quarter. The estimate has remained unchanged over the past 30 days.
Q2 Performance
Mercer International had reported year-over-year improvement in earnings and revenues in the second quarter of 2022. Earnings beat the Zacks Consensus Estimate. MERC has a trailing four-quarter earnings surprise of 11.4%, on average.
Mercer International Inc. Price and EPS Surprise
Mercer International Inc. price-eps-surprise | Mercer International Inc. Quote
Factors to Note
Mercer International’s third quarter 2022 results are likely to reflect higher pulp prices driven by low customer inventory levels and supply constraints. Higher pulp prices and volumes are likely to be reflected in the third-quarter performance of the pulp segment. However, the Wood Produts segment’s results in the quarter are expected to reflect the impact of lower lumber prices.
The rising interest rate scenario and cost inflation has weighed on the housing market which impacted lumber demand, and consequently its prices. MERC is expected to have witnessed higher energy revenues in the quarter boosted by strong demand and higher prices.
The company had to contend with elevated costs for key inputs including fiber and chemicals as well as freight and energy prices through the quarter. Its surplus energy sales are likely to have acted as a strong hedge against higher energy prices, as seen over the past few quarters.
A Major Development During Q3
On Sep 30, MERC announced that it has completed the previously-announced acquisition of Holzindustrie Torgau (HIT), which owns, among other things, a timber processing and value-added pallet production facility in Torgau, Germany, and a wood-processing facility in Dahlen, Germany, that produces garden products.
This buyout will make MERC the largest German pallet producer with an annual lumber capacity of approximately 960 MMfbm. It also diversifies its product mix with the introduction of pallets and biofuels.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Mercer International this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Mercer International is 0.00%.
Zacks Rank: MERC currently carries a Zacks Rank of 3.
Price Performance
Image Source: Zacks Investment Research
Shares of Mercer International have gained 32.9% over the past year, against the industry's decline of 24.6%.
Stocks Poised to Beat Estimates
Here are some Basic Materials stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +8.13% and sports a Zacks Rank #1.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 9% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.81.
Koppers Holdings Inc. (KOP - Free Report) , expected to release earnings on Nov 3, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
FMC Corporation (FMC - Free Report) , scheduled to release earnings on Nov 1, has an Earnings ESP of +0.30%.
The Zacks Consensus Estimate for FMC's earnings for the third quarter is currently pegged at $1.11. FMC currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.