US$8.63: That's What Analysts Think Mercer International Inc. (NASDAQ:MERC) Is Worth After Its Latest Results

Investors in Mercer International Inc. (NASDAQ:MERC) had a good week, as its shares rose 6.9% to close at US$6.93 following the release of its quarterly results. The results don't look great, especially considering that statutory losses grew 106% toUS$1.01 per share. Revenues of US$499m did beat expectations by 3.5%, but it looks like a bit of a cold comfort. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Mercer International

Taking into account the latest results, the most recent consensus for Mercer International from dual analysts is for revenues of US$2.08b in 2024. If met, it would imply a modest 4.3% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 61% to US$1.15. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$2.05b and losses of US$0.56 per share in 2024. So it's pretty clear the analysts have mixed opinions on Mercer International even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase to per-share losses.

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 13% to US$8.63, with the analysts signalling that growing losses would be a definite concern.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 8.8% growth on an annualised basis. That is in line with its 8.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.5% per year. So it's pretty clear that Mercer International is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Mercer International .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.