Zacks: Brokerages Expect International Paper Co (IP) Will Announce Earnings of $1.63 Per Share

Brokerages expect International Paper Co (NYSE:IP) to announce earnings per share (EPS) of $1.63 for the current fiscal quarter, according to Zacks Investment Research. Five analysts have provided estimates for International Paper’s earnings. The lowest EPS estimate is $1.53 and the highest is $1.68. International Paper posted earnings per share of $1.27 in the same quarter last year, which would suggest a positive year-over-year growth rate of 28.3%. The company is scheduled to announce its next quarterly earnings report on Thursday, February 7th.

According to Zacks, analysts expect that International Paper will report full-year earnings of $5.31 per share for the current financial year, with EPS estimates ranging from $5.22 to $5.36. For the next year, analysts forecast that the firm will post earnings of $5.70 per share, with EPS estimates ranging from $5.34 to $5.99. Zacks’ earnings per share averages are an average based on a survey of research analysts that follow International Paper.

International Paper (NYSE:IP) last released its earnings results on Thursday, October 25th. The basic materials company reported $1.56 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.47 by $0.09. The firm had revenue of $5.90 billion during the quarter, compared to analyst estimates of $5.90 billion. International Paper had a return on equity of 29.75% and a net margin of 13.68%.

IP has been the subject of several analyst reports. Goldman Sachs Group lowered International Paper from a “buy” rating to a “neutral” rating and set a $53.00 target price for the company. in a research note on Wednesday, October 10th. Royal Bank of Canada reiterated a “buy” rating and set a $55.00 price objective on shares of International Paper in a research report on Tuesday, October 23rd. Zacks Investment Research cut shares of International Paper from a “hold” rating to a “sell” rating in a research report on Thursday, October 4th. Seaport Global Securities initiated coverage on shares of International Paper in a research report on Tuesday, October 23rd. They set a “neutral” rating on the stock. Finally, Deutsche Bank set a $55.00 price objective on shares of International Paper and gave the company a “hold” rating in a research report on Monday, October 29th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have given a buy rating to the company. International Paper has an average rating of “Hold” and an average target price of $58.21.

International Paper stock traded down $0.36 during trading on Monday, hitting $44.76. The company’s stock had a trading volume of 3,211,392 shares, compared to its average volume of 3,255,559. The firm has a market capitalization of $18.27 billion, a P/E ratio of 12.83, a PEG ratio of 0.89 and a beta of 1.52. International Paper has a 1-year low of $39.60 and a 1-year high of $66.94. The company has a current ratio of 1.59, a quick ratio of 1.13 and a debt-to-equity ratio of 1.52.

International Paper announced that its Board of Directors has authorized a stock repurchase program on Tuesday, October 9th that allows the company to repurchase $430.00 million in outstanding shares. This repurchase authorization allows the basic materials company to reacquire up to 2.1% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 14th. Investors of record on Thursday, November 15th will be given a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 4.47%. The ex-dividend date of this dividend is Wednesday, November 14th. This is a boost from International Paper’s previous quarterly dividend of $0.48. International Paper’s payout ratio is currently 57.31%.

In other International Paper news, SVP John V. Sims sold 4,725 shares of International Paper stock in a transaction on Wednesday, September 19th. The shares were sold at an average price of $54.35, for a total transaction of $256,803.75. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Jeanmichel Ribieras sold 10,000 shares of International Paper stock in a transaction on Wednesday, September 19th. The stock was sold at an average price of $54.20, for a total transaction of $542,000.00. The disclosure for this sale can be found here. Insiders own 0.32% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of IP. Levin Capital Strategies L.P. boosted its stake in shares of International Paper by 66.4% during the second quarter. Levin Capital Strategies L.P. now owns 1,867,499 shares of the basic materials company’s stock valued at $97,259,000 after purchasing an additional 745,170 shares during the period. Conning Inc. raised its holdings in International Paper by 4,805.7% in the third quarter. Conning Inc. now owns 733,935 shares of the basic materials company’s stock worth $36,073,000 after purchasing an additional 718,974 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in International Paper by 28.9% in the third quarter. Dimensional Fund Advisors LP now owns 2,477,279 shares of the basic materials company’s stock worth $121,793,000 after purchasing an additional 555,339 shares in the last quarter. LSV Asset Management raised its holdings in International Paper by 10.3% in the third quarter. LSV Asset Management now owns 4,723,998 shares of the basic materials company’s stock worth $232,184,000 after purchasing an additional 439,685 shares in the last quarter. Finally, Becker Capital Management Inc. bought a new position in International Paper in the third quarter worth about $19,717,000. 81.00% of the stock is owned by institutional investors.

International Paper Company Profile

International Paper Company operates as a paper and packaging company primarily in North America, Europe, Latin America, North Africa, India, and Russia. It operates through three segments: Industrial Packaging, Global Cellulose Fibers, and Printing Papers. The Industrial Packaging segment manufactures containerboards, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft.

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Earnings History and Estimates for International Paper (NYSE:IP)

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