The 10-second takeaway
For the quarter ended June 30 (Q2), International Paper missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.
Margins contracted across the board.
International Paper reported revenue of $7.08 billion. The nine analysts polled by S&P Capital IQ wanted to see net sales of $7.34 billion on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $6.65 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 $0.46. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.46 per share. GAAP EPS of $0.31 for Q2 were 40% lower than the prior-year quarter's $0.52 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 25.5%, 110 basis points worse than the prior-year quarter. Operating margin was 6.7%, 160 basis points worse than the prior-year quarter. Net margin was 1.9%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.23 billion. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $28.42 billion. The average EPS estimate is $2.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 431 members out of 500 rating the stock outperform, and 69 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give International Paper a green thumbs-up, and 11 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 $38.60.
Can your retirement portfolio provide you with enough income to last? You'll need more than International Paper. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add International Paper to My Watchlist.
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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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.