Packaging and materials company International Paper (NYSE: IP) will be announcing earnings results this Wednesday before the bell. Here’s what investors should know.
International Paper missed analysts’ revenue expectations last quarter, reporting revenues of $6.00 billion, down 11.3% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS 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 grow 1% year on year, slowing from the 32.8% 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 Q3 results, giving us a hint as to what we can expect. Crown Holdings delivered year-on-year revenue growth of 15.9%, beating analysts’ expectations by 8.4%, and Packaging Corporation of America reported revenues up 12.5%, falling short of estimates by 0.7%. Crown Holdings’s stock price was unchanged after the resultswhile Packaging Corporation of America was up 4.1%.
Read our full analysis of Crown Holdings’s results here and Packaging Corporation of America’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the industrials stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. International Paper is down 2.9% during the same time and is heading into earnings with an average analyst price target of $45.40 (compared to the current share price of $33.00).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
