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Memphis, Tennessee-based International Paper Company (IP) manufactures and sells sustainable fiber-based packaging and pulp products across the Americas, Europe, and North Africa, boasting a $14.8 billion market cap. It is expected to announce its Q2 earnings before the market opens on Wednesday, July 24.
Ahead of the event, analysts expect International Paper to report a profit of $0.40 per share, down 32.2% from $0.59 per share reported in the year-ago quarter. The company surpassed Wall Street’s EPS projections in three of the past four quarters while missing on one other occasion. Its EPS for the last reported quarter dipped 67.9% annually to $0.17, falling short of the consensus estimate by 26.1%.
Looking ahead to fiscal 2024, analysts expect International Paper to report an EPS of $1.90, down 12% from $2.16 in fiscal 2023. However, its fiscal 2025 EPS is projected to grow 45.8% annually to $2.77.
Shares of the paper producer have gained 36.8% over the past 52 weeks, substantially outperforming the S&P 500 Index’s ($SPX) 27.8% gains and the S&P 500 Cons Disc Sector SPDR’s (XLY) 12.7% returns over the same time frame.
In May, International Paper’s stock surged amid buzz about potential partnerships and acquisitions, including talks with Brazilian pulp maker Suzano Papel (SUZ) and plans to acquire British packaging firm DS Smith Plc for $7.2 billion.
However, optimism waned in June when Suzano withdrew its $15 billion bid after IP declined to negotiate, leading to a 7.1% stock drop on June 27 amid regulatory and shareholder apprehensions over missed premium opportunities.
The consensus opinion on International Paper stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the eight analysts covering the stock, four recommend a “Strong Buy,” one advises “Moderate Buy,” and the remaining three suggest a “Hold” rating.
The average target price for International Paper is $47.71, indicating a potential upside of 11.7% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
