Packaging and materials company International Paper (NYSE: IP) will be reporting results this Thursday before the bell. Here’s what to expect.
International Paper beat analysts’ revenue expectations last quarter, reporting revenues of $5.97 billion, up 1.2% year on year. It was a strong quarter for the company, with EPS in line with analysts’ estimates.
Is International Paper a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting International Paper’s revenue to decline 8.2% year on year, a reversal from the 42.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. International Paper has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at International Paper’s peers in the industrials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Crown Holdings delivered year-on-year revenue growth of 16.5%, beating analysts’ expectations by 9.3%, and Packaging Corporation of America reported revenues up 14.7%, in line with consensus estimates. Crown Holdings traded up 3% following the results while Packaging Corporation of America was also up 2.5%.
Read our full analysis of Crown Holdings’s results here and Packaging Corporation of America’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the industrials stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. International Paper is up 15.9% during the same time and is heading into earnings with an average analyst price target of $43.64 (compared to the current share price of $44.31).
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