Earnings Review and Free Research Report: International Paper’s Revenue Grew 12.2%; EPS Increased 26.6%
Research Desk Line-up: Sealed Air Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 14, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on International Paper Co. (NYSE: IP), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=IP, following the Company's release of its financial results on October 25, 2017, for the third quarter fiscal 2017. The paper and packaging products Company's net revenue surpassed analysts' expectations of $5.91 billion and adjusted diluted EPS outbeat analysts' projections of $1.04. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For three months ended September 30, 2017, International Paper's net revenue increased 12.2% to $5.91 billion from $5.27 billion in Q3 FY16. The increase was due to benefits from the pulp business that was acquired in late 2016.
During Q3 FY17, International Paper's gross profit increased 14.9% to $1.89 billion from $1.64 billion in the same period last year. For the reported quarter, the Company's gross margin increased 70 basis points to 31.9% of revenue from 31.2% of revenue in Q3 FY16.
During Q3 FY17, International Paper's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 15.8% to $1.07 billion from $927 million in the same period last year. For the reported quarter, the Company's adjusted EBITDA margin increased 60 basis points to 18.2% of revenue from 17.6% of revenue in Q3 FY16.
For the reported quarter, International Paper's selling and administrative expenses increased 13.4% to $431 million from $380 million in Q3 FY16. During Q3 FY17, the Company's depreciation and amortization (D&A) expenses increased 18.7% to $373 million from $314 million in the same period last year.
During Q3 FY17, International Paper's operating income increased 15.3% to $707 million from $613 million in the same period last year. For the reported quarter, the Company's operating margin increased 30 basis points to 11.9% of revenue from 11.6% of revenue in Q3 FY16. During Q3 FY17, International Paper's adjusted operating income increased 16.8% to $730 million from $625 million in the same period last year.
For the reported quarter, International Paper's net income increased 26.6% to $395 million on a y-o-y basis from $312 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS increased 26.6% to $0.95 on a y-o-y basis from $0.75 in the same period last year. For the reported quarter, International Paper's adjusted net income increased 18.1% to $449 million on a y-o-y basis from $380 million in Q3 FY16. During Q3 FY17, the Company's adjusted diluted EPS increased 18.6% to $1.08 on a y-o-y basis from $0.91 in the same period last year.
International Paper's Segment Details
Industrial Packaging - During Q3 FY17, the Industrial Packaging segment's revenue increased 6.9% to $3.73 billion from $3.49 billion in Q3 FY16. For the reported quarter, the segment's operating income increased 10.8% to $469 million from $423 million in Q3 FY16.
Global Cellulose Fibers - During Q3 FY17, the Global Cellulose Fibers segment's revenue increased 170.2% to $654 million from $242 million in the same period last year. For the reported quarter, the segment's operating income was $49 million compared to operating loss of $38 million in Q3 FY16.
Printing Papers - During Q3 FY17, the Printing Papers segment's revenue increased 1.9% to $1.04 billion from $1.02 billion in the same period last year. For the reported quarter, the segment's operating income decreased 19.1% to $135 million from $167 million in Q3 FY16.
Consumer Packaging - During Q3 FY17, the Consumer Packaging segment's revenue decreased 0.6% to $491 million from $494 million in the same period last year. For the reported quarter, the segment's operating income decreased 11.4% to $54 million from $61 million in Q3 FY16.
Balance Sheet
As on September 30, 2017, International Paper's cash and temporary investments decreased 3.3% to $998 million from $1.03 billion on December 31, 2016. For the reported quarter, the Company's long-term debt increased 2.6% to $11.37 billion from $11.08 billion in Q4 FY16.
During Q3 FY17, the Company's net accounts and notes receivables increased 11.3% to $3.34 billion from $3.00 billion in the fourth quarter of last year. For the reported quarter, the Company's accounts payable and accrued liabilities increased 2.1% to $3.91 billion from $3.83 billion in Q4 FY16.
During FY17, International Paper's YTD cash provided by operating activities decreased 63.6% to $569 million from $1.57 billion in the same period last year. During FY17, the Company's YTD free cash flow decreased 12.3% to $1.24 billion from $1.41 billion in the same period last year.
Stock Performance
On Monday, November 13, 2017, the stock closed the trading session at $54.39, marginally slipping 0.84% from its previous closing price of $54.85. A total volume of 2.44 million shares have exchanged hands, which was higher than the 3-month average volume of 1.76 million shares. International Paper's stock price surged 1.80% in the last three months, 2.86% in the past six months, and 19.12% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 2.51%. The stock is trading at a PE ratio of 25.12 and has a dividend yield of 3.49%. At Monday's closing price, the stock's net capitalization stands at $22.49 billion.
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