International Paper (NYSE: IP) reported earnings on Oct. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), International Paper met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Revenue details
International Paper reported revenue of $7.03 billion. The nine analysts polled by S&P Capital IQ foresaw revenue of $7.12 billion on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $6.63 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.75. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.77 per share. GAAP EPS of $0.54 for Q3 were 55% lower than the prior-year quarter's $1.19 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 26.8%, 90 basis points worse than the prior-year quarter. Operating margin was 7.6%, 210 basis points worse than the prior-year quarter. Net margin was 3.4%, 440 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $7.09 billion. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $27.96 billion. The average EPS estimate is $2.57.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 439 members out of 506 rating the stock outperform, and 67 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give International Paper a green thumbs-up, and eight 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 $40.47.
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