A Preview Of International Paper's Earnings
International Paper (NYSE:IP) is preparing to release its quarterly earnings on Wednesday, 2025-04-30. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect International Paper to report an earnings per share (EPS) of $0.37.
The announcement from International Paper is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Earnings History Snapshot
During the last quarter, the company reported an EPS missed by $0.07, leading to a 2.49% drop in the share price on the subsequent day.
Here's a look at International Paper's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.05 | 0.26 | 0.41 | 0.22 |
| EPS Actual | -0.02 | 0.44 | 0.55 | 0.17 |
| Price Change % | -2.0% | 0.0% | -0.0% | 1.0% |
Performance of International Paper Shares
Shares of International Paper were trading at $47.48 as of April 28. Over the last 52-week period, shares are up 34.91%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Insights Shared by Analysts on International Paper
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding International Paper.
Analysts have provided International Paper with 7 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $59.29, suggesting a potential 24.87% upside.
Comparing Ratings Among Industry Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Avery Dennison, Graphic Packaging Holding and Sonoco Prods, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Avery Dennison, with an average 1-year price target of $202.54, suggesting a potential 326.58% upside.
- Analysts currently favor an Neutral trajectory for Graphic Packaging Holding, with an average 1-year price target of $30.0, suggesting a potential 36.82% downside.
- Analysts currently favor an Buy trajectory for Sonoco Prods, with an average 1-year price target of $54.8, suggesting a potential 15.42% upside.
Key Findings: Peer Analysis Summary
Within the peer analysis summary, vital metrics for Avery Dennison, Graphic Packaging Holding and Sonoco Prods are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| International Paper | Buy | -0.46% | $1.33B | -1.75% |
| Avery Dennison | Outperform | -1.71% | $609.20M | 7.42% |
| Graphic Packaging Holding | Neutral | -6.85% | $453M | 4.58% |
| Sonoco Prods | Buy | 24.51% | $85.59M | -1.81% |
Key Takeaway:
International Paper ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the bottom.
Unveiling the Story Behind International Paper
International Paper manufactures packaging products and cellulose fibers. It accounts for roughly one third of the North American corrugated packaging market. Though it has operations in Brazil, India, and China, more than three fourths of its sales come from North America. International Paper serves a variety of end markets, including industrial, consumer products, and manufacturing.
Key Indicators: International Paper's Financial Health
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Negative Revenue Trend: Examining International Paper's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -0.46% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.
Net Margin: International Paper's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -3.21%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): International Paper's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -1.75% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): International Paper's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.64%, the company may face hurdles in achieving optimal financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.72, International Paper adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for International Paper visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.