International Paper Company (IP Quick QuoteIP - Free Report) reported second-quarter 2018 adjusted earnings of $1.19 per share compared with 66 cents per share in the year-ago quarter. Earnings also outpaced the Zacks Consensus Estimate of $1.09.

 

Including one-time items, earnings for the quarter were 97 cents per share compared with 19 cents per share in the year-ago quarter.

 

Net sales improved to $5,833 million in the reported quarter from $5,383 million in the year-ago quarter, comfortably surpassing the Zacks Consensus Estimate of $5,716 million.

 

The company reported adjusted operating earnings of $498 million compared with $274 million in the prior-year quarter.

 

 

Industrial Packaging: Sales from this segment increased to $4,022 million from $3,785 million in the year-ago period. Operating profit improved to $569 million from $421 million in the year-ago quarter.

 

Printing Papers: Sales from this segment were $1,060 million in the reported quarter compared with $1,017 million in the year-earlier quarter. Operating profit for the segment was $94 million compared with $88 million in the year-ago quarter.

 

Global Cellulose Fibers: Sales from this segment were $692 million compared with $612 million in the prior-year quarter. Operating profit was $69 million compared with the year-ago figure of $12 million.

 

 

As of Jun 30, 2018, cash and temporary investments aggregated $1,073 million compared with $1,018 million as of Dec 31, 2017. Long-term debt was $10,805 million as of Jun 30, 2018 compared with $10,846 million as of Dec 31, 2017.

 

Cash flow from operating activities for the first half of fiscal 2018 was $1,464 million compared with $1,278 million in the prior-year period. Free cash flow for the quarter was $361 million compared with $355 million in the prior-year quarter.

 

 

Backed by healthy demand across its global operations, the company anticipates delivering a second consecutive year of strong earnings growth in 2018.

 

 

International Paper has inched up 0.8% in the past year, against the industry’s decline of 0.2%.

 

The company currently carries a Zacks Rank #3 (Hold).

 

Better-ranked stocks in the same sector include Celanese Corporation (CE Quick QuoteCE - Free Report) , Methanex Corporation (MEOH Quick QuoteMEOH - Free Report) and Eastman Chemical Company (EMN Quick QuoteEMN - Free Report) . While Celanese and Methanex sport a Zacks Rank #1 (Strong Buy), Eastman Chemical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Celanese has a long-term earnings growth rate of 9.3%. The stock has rallied 20% in a year’s time.

 

Methanex has a long-term earnings growth rate of 15%. Its shares have appreciated 52% in the past year.

 

Eastman Chemical has a long-term earnings growth rate of 9.4%. The company’s shares have been up 20% over the past year.

 

 

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