What's in Store for International Paper (IP) in Q3 Earnings?
International Paper Company IP is scheduled to report third-quarter 2022 results before the opening bell on Oct 27.
Q3 Estimates
The Zacks Consensus Estimate for IP’s third-quarter sales is pegged at $5.34 billion, suggesting a decline of 6.5% from the prior-year quarter’s levels. The consensus mark for earnings is currently at $1.22 per share, indicating a year-over-year decline of 9.6%. The earnings estimates have gone down 2% in the past 30 days.
Q2 Performance
In the last reported quarter, International Paper’s earnings and revenues rose year over year and beat the Zacks Consensus Estimate. Over the trailing four quarters, the company has surpassed the Zacks Consensus Estimate for earnings in two and missed twice, the average surprise being 10.2%.
International Paper Company Price and EPS Surprise
International Paper Company price-eps-surprise | International Paper Company Quote
Factors to Note
International Paper’s products are essential for producing and delivering food, pharmaceuticals, hygiene products and emergency supplies to consumers globally. Its top-line results in the third quarter will be supported by the solid demand for corrugated packaging and pulp as well as growing e-commerce demand. However, the widespread supply-chain constraints might have impaired the company’s ability to meet high demand.
Escalating input costs, higher chemicals, energy as well as distribution and rising transportation costs might have impacted margins in the quarter. Operating costs will remain elevated due to ongoing logistics constraints. These factors are likely to be reflected in International Paper’s third-quarter performance.
The Zacks Consensus Estimate for the Industrial Packaging segment’s revenues is currently pegged at $4,440 million, suggesting a 9% increase from the prior-year quarter’s reported figure of $4,087 million. Solid demand for corrugated and containerboard packaging is likely to have favored the segment’s sales.
The segment is likely to have witnessed improved price and mix along with lower maintenance outage expenses in the quarter but the segment’s margins might have been dented by escalating input and output costs. The segment’s operating profit for the quarter is projected to increase 30% year over year to $556 million.
The Global Cellulose Fibers business has been witnessing solid consumer demand for absorbent pulp products. The Zacks Consensus Estimate for the segment’s third-quarter revenues is pegged at $836 million, suggesting an improvement of 15% from the year-ago quarter’s levels.
Higher input costs and operational costs might have eroded the segment’s performance in the period under review. The estimate for the segment’s operating profit currently stands at $70 million, indicating a 27% drop from the prior-year quarter’s operating earnings of $96 million.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for International Paper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: International Paper has an Earnings ESP of -0.79%.
Zacks Rank: The companycurrently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
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Shares of International Paper have declined 39.2% in the past year compared with the industry's fall of 25.1%.
Stocks to Consider
Here are some Basic Materials stocks, which, according to, our model, have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation ALB, scheduled to release earnings on Nov 2, has an Earnings ESP of +8.13% and sports a Zacks Rank #1.
The consensus estimate for Albemarle’s third-quarter earnings has been revised 9% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.81.
Koppers Holdings Inc. KOP, expected to release earnings on Nov 3, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.
FMC Corporation FMC, scheduled to release earnings on Nov 1, has an Earnings ESP of +0.30%.
The Zacks Consensus Estimate for FMC's earnings for the third quarter is currently pegged at $1.11. FMC currently carries a Zacks Rank #3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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International Paper Company (IP) : Free Stock Analysis Report
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