International Paper Beats Expectations but Takes a Step Back Anyway
International Paper (NYS: IP) reported earnings on April 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), International Paper missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Margins dropped across the board.
International Paper chalked up revenue of $6.66 billion. The eight analysts polled by S&P Capital IQ anticipated revenue of $6.90 billion on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $6.39 billion.
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 $0.57. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.51 per share. GAAP EPS of $0.43 for Q1 were 45% lower than the prior-year quarter's $0.78 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.1%, 250 basis points worse than the prior-year quarter. Operating margin was 6.1%, 260 basis points worse than the prior-year quarter. Net margin was 2.8%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.36 billion. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $29.01 billion. The average EPS estimate is $2.71.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 424 members out of 493 rating the stock outperform, and 69 members rating it underperform. Among 136 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 126 give International Paper a green thumbs-up, and 10 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 $38.69.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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