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Paper Stocks Q1 Earnings Slated on Apr 27: IP, UFS, SVCBY
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The earnings season is nearing its peak with over 800 companies reporting this week, including 191 S&P 500 members. The 95 S&P 500 companies that have reported results till Apr 21, more or less confirm that overall first-quarter results are likely to be the best in about three years.
Total earnings for these 95 companies (accounting for 24.9% of the index’s total market capitalization) are up 14.3% on 4.6% higher revenues, with 72.6% beating earnings estimates and 62.1% surpassing top-line expectations. Based on the hitherto observed pattern, the first quarter is anticipated to register high single-digit percentage growth on a year-over-year basis.
Per the latest Earnings Preview, overall first-quarter earnings for all the S&P 500 companies are expected to be up 9.1% on a 6.0% growth in revenues. This represents a healthy improvement from fourth-quarter 2016 that recorded the highest growth in its preceding two years. The relative improvement in the quarterly performance is largely due to a turnaround in the economy, improved job market and rising oil prices. Experts widely believe that earnings growth is likely to be in double digits in 2017 and beyond.
For the first quarter as a whole, about five of the 16 Zacks sectors are expected to witness an earnings decline, with Autos, Transportation and Retail/Wholesale being the biggest drag.
The Basic Materials sector is looking reasonably good. For the sector, earnings are expected to grow 11.0% year over year while sales are touted to rise 2.1%, driven by higher capital investments.
Let’s have a sneak peek at three major Paper stocks scheduled to report first-quarter 2017 earnings tomorrow to see how things are shaping up for the upcoming results.
International Paper Company (IP - Free Report) is scheduled to report results before the opening bell. International Paper is undergoing restructuring initiatives to transform itself into a core packaging company. It intends to invest $300 million through 2017 to further improve its North American containerboard mill system, enhance product quality, and reduce manufacturing and delivery costs. These projects are expected to have a collective internal rate of return of 20%. International Paper intends to focus more resources on high-return capital projects within its core businesses that can drive additional earnings growth. For the impending quarter, the company has an Earnings ESP of 0.00%, and Zacks Rank #3 (Hold), making an earnings surprise prediction uncertain. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 for a likely earnings beat.You can see the complete list of today’s Zacks #1 Rank stocks here.
International Paper Company Price and EPS Surprise
Domtar Corporation is slated to report earnings before the market opens. The company is currently seeking growth through profitable investment opportunities with a commitment to pollution-free environment and sustainable practices. Domtar is also streamlining its cost structure, improving revenue quality and maintaining a healthy cash flow with a disciplined approach to cash utilization. We remain inconclusive on earnings beat prediction this quarter as it has an ESP of -26.67% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Svenska Cellulosa Aktiebolaget SCA (publ) is scheduled to report results before the opening bell. This hygiene and forest products company is likely to split into two separate listed companies – one focusing on forest products operations and all forest land and the other focusing on the hygiene and personal care products, operating under the name Essity. We cannot conclusive predict an earnings beat this quarter as the company has an ESP of 0.00% and a Zacks Rank #4 (Sell).
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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Paper Stocks Q1 Earnings Slated on Apr 27: IP, UFS, SVCBY
The earnings season is nearing its peak with over 800 companies reporting this week, including 191 S&P 500 members. The 95 S&P 500 companies that have reported results till Apr 21, more or less confirm that overall first-quarter results are likely to be the best in about three years.
Total earnings for these 95 companies (accounting for 24.9% of the index’s total market capitalization) are up 14.3% on 4.6% higher revenues, with 72.6% beating earnings estimates and 62.1% surpassing top-line expectations. Based on the hitherto observed pattern, the first quarter is anticipated to register high single-digit percentage growth on a year-over-year basis.
Per the latest Earnings Preview, overall first-quarter earnings for all the S&P 500 companies are expected to be up 9.1% on a 6.0% growth in revenues. This represents a healthy improvement from fourth-quarter 2016 that recorded the highest growth in its preceding two years. The relative improvement in the quarterly performance is largely due to a turnaround in the economy, improved job market and rising oil prices. Experts widely believe that earnings growth is likely to be in double digits in 2017 and beyond.
For the first quarter as a whole, about five of the 16 Zacks sectors are expected to witness an earnings decline, with Autos, Transportation and Retail/Wholesale being the biggest drag.
The Basic Materials sector is looking reasonably good. For the sector, earnings are expected to grow 11.0% year over year while sales are touted to rise 2.1%, driven by higher capital investments.
Let’s have a sneak peek at three major Paper stocks scheduled to report first-quarter 2017 earnings tomorrow to see how things are shaping up for the upcoming results.
International Paper Company (IP - Free Report) is scheduled to report results before the opening bell. International Paper is undergoing restructuring initiatives to transform itself into a core packaging company. It intends to invest $300 million through 2017 to further improve its North American containerboard mill system, enhance product quality, and reduce manufacturing and delivery costs. These projects are expected to have a collective internal rate of return of 20%. International Paper intends to focus more resources on high-return capital projects within its core businesses that can drive additional earnings growth. For the impending quarter, the company has an Earnings ESP of 0.00%, and Zacks Rank #3 (Hold), making an earnings surprise prediction uncertain. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 for a likely earnings beat.You can see the complete list of today’s Zacks #1 Rank stocks here.
International Paper Company Price and EPS Surprise
International Paper Company Price and EPS Surprise | International Paper Company Quote
Domtar Corporation is slated to report earnings before the market opens. The company is currently seeking growth through profitable investment opportunities with a commitment to pollution-free environment and sustainable practices. Domtar is also streamlining its cost structure, improving revenue quality and maintaining a healthy cash flow with a disciplined approach to cash utilization. We remain inconclusive on earnings beat prediction this quarter as it has an ESP of -26.67% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Domtar Corporation Price and EPS Surprise
Domtar Corporation Price and EPS Surprise | Domtar Corporation Quote
Svenska Cellulosa Aktiebolaget SCA (publ) is scheduled to report results before the opening bell. This hygiene and forest products company is likely to split into two separate listed companies – one focusing on forest products operations and all forest land and the other focusing on the hygiene and personal care products, operating under the name Essity. We cannot conclusive predict an earnings beat this quarter as the company has an ESP of 0.00% and a Zacks Rank #4 (Sell).
Svenska Cellulosa AB Price and EPS Surprise
Svenska Cellulosa AB Price and EPS Surprise | Svenska Cellulosa AB Quote
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>