The 10-second takeaway
For the quarter ended Dec. 31 (Q4), International Paper beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank.
Margins shrank across the board.
International Paper reported revenue of $7.08 billion. The eight analysts polled by S&P Capital IQ hoped for a top line of $6.96 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $6.37 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 $0.69. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.66 per share. GAAP EPS of $0.53 for Q4 were 10% lower than the prior-year quarter's $0.59 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 26.6%, 20 basis points worse than the prior-year quarter. Operating margin was 6.7%, 230 basis points worse than the prior-year quarter. Net margin was 3.3%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.03 billion. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $29.01 billion. The average EPS estimate is $3.72.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 432 members out of 500 rating the stock outperform, and 68 members rating it underperform. Among 157 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 149 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 $42.36.
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