Packaging and materials company International Paper (NYSE: IP) will be reporting earnings this Thursday morning. Here’s what to look for.
International Paper beat analysts’ revenue expectations last quarter, reporting revenues of $6.01 billion, up 31.1% 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’ 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 be flat year on year, slowing from the 27.8% 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 to 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 industrial packaging segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Crown Holdings delivered year-on-year revenue growth of 12.9%, beating analysts’ expectations by 7.8%, and Avery Dennison reported revenues up 7%, topping estimates by 1.8%. Crown Holdings traded down 1.4% following the results.
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 14.1% on average over the last month. International Paper is down 3.4% during the same time and is heading into earnings with an average analyst price target of $42.70 (compared to the current share price of $33.80).
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