International Paper Set for Increased Earnings in Q3 2024

International Paper (NYSE:IP) has been forecasted by Zacks Research to achieve a higher-than-anticipated earnings per share (EPS) of $0.51 in the third quarter of 2024. This new estimate, provided by Zacks Research analyst M. Das, sees an increase from the previously projected $0.49 EPS. With a broader perspective, the company is expected to close its full-year earnings at $2.10 per share, with forecasts stretching into the following fiscal periods. For the fiscal year 2024, predictions stand at $1.80 EPS, with further anticipation of $0.56 EPS in Q1 2025, progress to $0.59 EPS by Q3 2025, and annual earnings reaching $2.24 EPS for fiscal year 2025.

Earnings History and Analyst Ratings

Reflecting on its earnings history, International Paper recorded a successful quarter on October 26, surpassing consensus estimates with a $0.64 EPS. This achievement was notably higher than analyst expectations of $0.59. The revenue for the quarter was reported at $4.61 billion, slightly shy of the $4.81 billion expectations. A comparison to the previous year's same quarter reveals a 14.6% decline in revenue. Despite the fluctuation, the company maintained a 1.31% net margin and an impressive 10.79% return on equity. Prior year comparisons show a slight dip from the $1.01 EPS earned in the same quarter.

International Paper’s performance has caught the attention of several brokerage firms. Truist Financial upgraded their price target for IP, rating the stock as a "buy" while increasing the target from $40.00 to $46.00. StockNews.com changed its rating from a "hold" to a "buy." In contrast, Jefferies Financial Group revised its target price downward from $33.00 to $32.00, keeping a "hold" rating. Analysis from various angles presents International Paper with a mix of ratings, balancing out to an average "Hold" rating and a consensus target price of $37.22.

Stock Performance and Dividends

The paper and pulp giant saw its stock open at $37.27. The figures involved project a substantial market capitalization of $12.90 billion with a price-to-earnings ratio of 50.36. The beta indicator for the stock demonstrates a value of 1.03. International Paper's liquidity metrics suggest a strong stance with a quick ratio of 1.25 and a current ratio of 1.75. The debt-to-equity ratio stands at 0.62. The past year's price fluctuation shows the stock's low at $29.00 and peaks at $41.89. Talking of dividends, the company released a quarterly dividend of $0.4625 per share on December 15th, boasting a 4.96% dividend yield and a 250.00% payout ratio based on its current stock valuation.

Institutional Interest in International Paper

Institutional investors have shown varied levels of engagement with International Paper's stock. Reports indicate significant transactions from Vanguard Personalized Indexing Management LLC, B. Riley Wealth Advisors Inc., and Donaldson Capital Management LLC, denoting both incremental purchases and portfolio expansions. NewSquare Capital LLC and Pinkerton Retirement Specialists LLC also made noticeable adjustments to their holdings. Such activity reinforces the stock’s stronghold with institutional investors owning a decisive 80.78% share.

International Paper continues to be a leader in the production of renewable fiber-based products, operating across multiple global regions and diversifying its reach within the packaging and pulp industry. The company's solid footing and diverse portfolio underscore its significance in the basic materials sector.

International, Paper, Earnings