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.
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