International Paper Earnings: What To Look For From IP

Packaging and materials company International Paper (NYSE:IP) will be reporting results this Thursday before market open. Here’s what investors should know.

International Paper beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $6.77 billion, up 42.9% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA 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, analysts are expecting International Paper’s revenue to grow 38.3% year on year to $6.48 billion, improving from the 1.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.56 per share.International Paper Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. International Paper has missed Wall Street’s revenue estimates six times over the last two years.

Looking at International Paper’s peers in the industrial packaging segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Crown Holdings delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 1.5%, and Avery Dennison reported revenues up 1.5%, in line with consensus estimates. Crown Holdings traded up 5.4% following the results while Avery Dennison was also up 14%.

Read our full analysis of Crown Holdings’s results here and Avery Dennison’s results here.

There has been positive sentiment among investors in the industrial packaging segment, with share prices up 3.1% on average over the last month. International Paper is up 2.4% during the same time and is heading into earnings with an average analyst price target of $52.20 (compared to the current share price of $47.18).

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