International Paper (NYSE: IP ) reported earnings on May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), International Paper met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share increased. GAAP earnings per share increased significantly.
Gross margins grew, operating margins contracted, net margins grew.
International Paper recorded revenue of $7.09 billion. The 12 analysts polled by S&P Capital IQ hoped for revenue of $7.06 billion on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $6.66 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 $0.65. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.74 per share. Non-GAAP EPS of $0.65 for Q1 were 14% higher than the prior-year quarter's $0.57 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.71 for Q1 were 65% higher than the prior-year quarter's $0.43 per share. (The prior-year quarter included $0.01 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 26.4%, 100 basis points better than the prior-year quarter. Operating margin was 6.4%, 70 basis points worse than the prior-year quarter. Net margin was 4.5%, 170 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $7.37 billion. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $29.41 billion. The average EPS estimate is $3.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 440 members out of 507 rating the stock outperform, and 67 members rating it underperform. Among 156 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 149 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 $51.20.
Looking for alternatives to International Paper? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add International Paper to My Watchlist.