We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
International Paper (IP - Free Report) is a global producer of paper, packaging, and more. International Paper is coming off two strong years of revenue growth.
International Paper shares have, however, tumbled over the past two years after getting overheated. Wall Street also sold IP stock as its outlook for earnings began to fade further and further.
What’s Going On with IP?
International Paper is a global producer of packaging, pulp, and other fiber-based products. The company also boasts that it is one of the largest recyclers in North America. And as its name suggests, IP operates around various parts of the world, with manufacturing in North America, Latin America, North Africa, and Europe.
International Paper’s packaging unit includes corrugated, bulk, solid fiber, retail packaging & display, and more. IP’s paper segment features containerboard and beyond, with a pulp segment that includes fluff, papergrade, and more. International Paper also has an expansive recycling unit, alongside various packaging services from printing and testing to graphic and structural design.
International Paper’s revenue climbed roughly 9% in 2022 after it jumped by 10% in 2021. Zacks estimates call for IP’s revenue to slip by 6% in FY23 and another 3% next year.
On top of that, IP’s adjusted earnings are projected to slide by 26% YoY this year and then slip another 9% lower in FY24 to hit $2.14 a share.
Image Source: Zacks Investment Research
International Paper’s projected downturn comes amid a wider global economic slowdown and a difficult to compete against stretch of growth during the post-covid boom. IP’s CEO noted in prepared Q1 remarks that it is "navigating a challenging and dynamic macro environment."
Bottom Line
Unfortunately, Wall Street has continued to be disappointed by International Paper’s guidance. IP’s FY23 Zacks consensus earnings outlook is down 19% in the last two months, with FY24’s figure about 20% lower. These downward estimate revisions help it land a Zacks Rank #5 (Strong Sell) right now.
The nearby chart also showcases that International Paper’s rough earnings outlook has continued to get worse over the last year-plus. IP shares are now down around 50% over the last two years. The paper company has also seen its stock price drop by 45% in the past five years.
IP stock is trading below both its 50-day and 200-day moving averages. Some investors might want to think about trying to call a bottom. But it might be best for investors who think highly of International Paper to wait for it to start showing signs of life instead of trying to catch a falling knife.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bear of the Day: International Paper (IP)
International Paper (IP - Free Report) is a global producer of paper, packaging, and more. International Paper is coming off two strong years of revenue growth.
International Paper shares have, however, tumbled over the past two years after getting overheated. Wall Street also sold IP stock as its outlook for earnings began to fade further and further.
What’s Going On with IP?
International Paper is a global producer of packaging, pulp, and other fiber-based products. The company also boasts that it is one of the largest recyclers in North America. And as its name suggests, IP operates around various parts of the world, with manufacturing in North America, Latin America, North Africa, and Europe.
International Paper’s packaging unit includes corrugated, bulk, solid fiber, retail packaging & display, and more. IP’s paper segment features containerboard and beyond, with a pulp segment that includes fluff, papergrade, and more. International Paper also has an expansive recycling unit, alongside various packaging services from printing and testing to graphic and structural design.
International Paper’s revenue climbed roughly 9% in 2022 after it jumped by 10% in 2021. Zacks estimates call for IP’s revenue to slip by 6% in FY23 and another 3% next year.
On top of that, IP’s adjusted earnings are projected to slide by 26% YoY this year and then slip another 9% lower in FY24 to hit $2.14 a share.
Image Source: Zacks Investment Research
International Paper’s projected downturn comes amid a wider global economic slowdown and a difficult to compete against stretch of growth during the post-covid boom. IP’s CEO noted in prepared Q1 remarks that it is "navigating a challenging and dynamic macro environment."
Bottom Line
Unfortunately, Wall Street has continued to be disappointed by International Paper’s guidance. IP’s FY23 Zacks consensus earnings outlook is down 19% in the last two months, with FY24’s figure about 20% lower. These downward estimate revisions help it land a Zacks Rank #5 (Strong Sell) right now.
The nearby chart also showcases that International Paper’s rough earnings outlook has continued to get worse over the last year-plus. IP shares are now down around 50% over the last two years. The paper company has also seen its stock price drop by 45% in the past five years.
IP stock is trading below both its 50-day and 200-day moving averages. Some investors might want to think about trying to call a bottom. But it might be best for investors who think highly of International Paper to wait for it to start showing signs of life instead of trying to catch a falling knife.