Key Events in the Consumer Sector in the Second Week of May
International Paper (IP) fell by 0.31% and closed at $41.97 per share at the end of the second week of May 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -0.31%, 2.4%, and 12.8%, respectively, as of the same day. This means that International Paper is trading 1.8% below its 20-day moving average, 1.8% above its 50-day moving average, and 5.6% above its 200-day moving average.
Related ETF and peers
The Guggenheim Timber ETF (CUT) invests 4.0% of its holdings in International Paper. CUT tracks the Beacon Global Timber Index—an index that uses a multifactor selection process to identify global timber stocks with the greatest risk or return potential. CUT’s YTD price movement was -1.8% as of May 13, 2016.
The market caps of International Paper’s competitors are as follows:
- Packaging Corporation of America (PKG) – $6.2 billion
- Domtar (UFS) – $2.4 billion
- KapStone Paper and Packaging (KS) – $1.4 billion
International Paper declared a dividend
International Paper declared a quarterly dividend of $0.44 per share on its common stock. The dividend will be paid on June 15, 2016, to shareholders of record at the close of business on May 27, 2016.
Performance in fiscal 1Q16
International Paper reported fiscal 1Q16 net sales of $5.1 billion—a fall of 7.4% from net sales of $5.5 billion in fiscal 1Q15. Sales from the industrial packaging, printing paper, and consumer packaging segments fell by 2.8%, 3.6%, and 36.4%, respectively, between fiscals 1Q15 and 1Q16. It reported net losses on sales and impairment of businesses of $37.0 million in fiscal 1Q16.
Its net income and EPS (earnings per share) rose to $334.0 million and $0.81, respectively, in fiscal 1Q16—compared to $313.0 million and $0.74 in fiscal 1Q15.
International Paper’s cash and temporary investments rose by 10% and its inventories fell by 0.49% between fiscal 1Q15 and 1Q16. In fiscal 1Q16, its current ratio rose to 1.66x and its long-term DE (debt-to-equity) ratio fell to 2.1x—compared with the current and long-term DE ratios of 1.65x and 2.3x, respectively, in fiscal 4Q15. It reported free cash flow of $311.0 million in fiscal 1Q16.
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