International Paper Beats Analyst Estimates on EPS
International Paper (NYS: IP) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), International Paper met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins increased, operating margins dropped, net margins grew.
International Paper logged revenue of $7.34 billion. The 11 analysts polled by S&P Capital IQ expected a top line of $7.41 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.64. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. Non-GAAP EPS of $0.64 for Q2 were 39% higher than the prior-year quarter's $0.46 per share. (The prior-year quarter included $0.04 per share in earnings from discontinued operations.) GAAP EPS of $0.57 for Q2 were 84% higher than the prior-year quarter's $0.31 per share. (The prior-year quarter included $0.04 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.2%, 70 basis points better than the prior-year quarter. Operating margin was 7.0%, 20 basis points worse than the prior-year quarter. Net margin was 3.5%, 160 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $7.58 billion. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $29.63 billion. The average EPS estimate is $3.52.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 448 members out of 516 rating the stock outperform, and 68 members rating it underperform. Among 159 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 152 give International Paper a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on International Paper is outperform, with an average price target of $53.25.
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The article International Paper Beats Analyst Estimates on EPS originally appeared on Fool.com.
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