What Should You Anticipate From International Paper’s (IP) Fourth Quarter Earnings

International Paper Set to Announce Earnings

International Paper (NYSE:IP), a leading name in packaging and materials, is scheduled to release its latest financial results this Thursday morning. Here’s a breakdown of what investors should keep an eye on.

Recent Performance Overview

In the previous quarter, International Paper reported $6.22 billion in revenue, marking a 32.8% increase compared to the same period last year. However, these results fell short of Wall Street’s expectations, with both revenue and adjusted operating income missing analyst forecasts.

What to Expect This Quarter

For the upcoming quarter, analysts are projecting revenue to reach $5.89 billion, representing a 28.7% year-over-year increase—a notable improvement from the flat performance seen in the prior year’s comparable quarter. Adjusted earnings per share are anticipated to be $0.25.

Analyst Sentiment and Historical Trends

Over the past month, analysts have largely maintained their forecasts for International Paper, indicating confidence in the company’s near-term outlook. It’s worth noting that International Paper has missed revenue estimates from Wall Street six times in the last two years.

Industry Peers and Market Context

Several companies within the industrials sector have already shared their fourth-quarter results, offering some perspective on the broader market. Packaging Corporation of America reported a 10.1% year-over-year revenue increase but still came in 2.9% below analyst expectations. Meanwhile, Boeing saw its revenue surge by 57.1%, surpassing estimates by 6.9%.

Investor Sentiment and Stock Performance

The industrials sector has seen a positive trend recently, with average share prices rising 9.3% over the past month. International Paper’s stock has climbed 5.9% during this period. Heading into earnings, the average analyst price target for International Paper stands at $46.80, compared to its current price of $42.15.

Special Opportunity: Share Buybacks and Free Cash Flow

When a company has excess cash, repurchasing its own shares can be a smart move—provided the valuation is attractive. We’ve identified a promising, undervalued stock that is generating strong free cash flow and actively buying back shares.

Curious whether International Paper is a buy or sell ahead of its earnings report?