We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
What's in the Offing for International Paper's (IP) Q2 Earnings?
Read MoreHide Full Article
International Paper Company (IP - Free Report) is scheduled to report second-quarter 2022 results before the opening bell on Jul 28.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter total sales is pegged at $5.31 billion, suggesting a decline of 5.5% from the prior-year quarter’s levels. The consensus mark for earnings is currently at $1.10 per share, indicating year-over-year growth of 3.8%. The earnings estimates have gone down 0.9% in the past 30 days.
Q1 Performance
In the last reported quarter, International Paper’s earnings and revenues rose year over year and beat the Zacks Consensus Estimate on both counts. Over the trailing four quarters, the company has surpassed the Zacks Consensus Estimate for earnings in two of the trailing quarters and missed twice, the average surprise being a positive 7.31%.
Factors to Note
International Paper’s products are essential for producing and delivering food, pharmaceuticals, hygiene products and emergency supplies to consumers globally. Growing e-commerce demand has been boosting the company’s performance as it has become a primary spending channel for customers due to the containment measures amid the coronavirus pandemic. However, the widespread supply-chain constraints might have impaired the company’s ability to meet high demand. These factors are likely to get reflected in International Paper’s second-quarter performance.
Escalating input costs, higher chemicals, energy and distribution costs and rising transportation costs might have impacted margins in the quarter. Operating costs will remain elevated due to ongoing logistics constraints.
The Zacks Consensus Estimate for the Industrial Packaging segment’s revenues is currently pegged at $4,503 million, suggesting an increase from the prior-year quarter’s reported figure of $4,056 million. Solid demand for corrugated and containerboard packaging is likely to have favored the segment’s sales. However, escalating input costs and operating costs might have dented the segment’s margins. The segment’s operating profit for the quarter is projected to increase 24% year over year to $505 million. The segment is likely to have witnessed improved price and mix and lower maintenance outage expenses in the quarter.
The Global Cellulose Fibers business has been witnessing solid consumer demand for absorbent pulp products. However, the segment’s pulp shipments might have been affected by port congestion and vessel delays. The Zacks Consensus Estimate for the segment’s second-quarter revenues is pegged at $755 million, suggesting an improvement of 13% from the year-ago quarter’s levels. Higher input costs and operational costs might have eroded the segment’s performance in the period under review. The segment is likely to incur an operating loss of $3.04 million for the second quarter against the prior-year quarter’s operating earnings of $10 million.
International Paper Company Price and EPS Surprise
Our proven model doesn’t conclusively predict an earnings beat for International Paper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: International Paper has an Earnings ESP of -0.91%.
Shares of International Paper have fallen 26.1% in the past year compared with the industry's fall of 20%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some other Basic Materials stocks which you may consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +11.87% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 11.7% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.94.
Celanese Corporation (CE - Free Report) , scheduled to release earnings on Jul 28, has an Earnings ESP of +0.89% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Celanese’s second-quarter earnings has been revised 2% upward over the past 60 days. The Zacks Consensus Estimate for CE’s earnings for the quarter is currently pegged at $4.58.
Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for CBT’s second-quarter earnings has been revised 1.3% downward over the past 60 days. The consensus estimate for Cabot’s earnings for the second quarter is pegged at $1.53.
Image: Bigstock
What's in the Offing for International Paper's (IP) Q2 Earnings?
International Paper Company (IP - Free Report) is scheduled to report second-quarter 2022 results before the opening bell on Jul 28.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter total sales is pegged at $5.31 billion, suggesting a decline of 5.5% from the prior-year quarter’s levels. The consensus mark for earnings is currently at $1.10 per share, indicating year-over-year growth of 3.8%. The earnings estimates have gone down 0.9% in the past 30 days.
Q1 Performance
In the last reported quarter, International Paper’s earnings and revenues rose year over year and beat the Zacks Consensus Estimate on both counts. Over the trailing four quarters, the company has surpassed the Zacks Consensus Estimate for earnings in two of the trailing quarters and missed twice, the average surprise being a positive 7.31%.
Factors to Note
International Paper’s products are essential for producing and delivering food, pharmaceuticals, hygiene products and emergency supplies to consumers globally. Growing e-commerce demand has been boosting the company’s performance as it has become a primary spending channel for customers due to the containment measures amid the coronavirus pandemic. However, the widespread supply-chain constraints might have impaired the company’s ability to meet high demand. These factors are likely to get reflected in International Paper’s second-quarter performance.
Escalating input costs, higher chemicals, energy and distribution costs and rising transportation costs might have impacted margins in the quarter. Operating costs will remain elevated due to ongoing logistics constraints.
The Zacks Consensus Estimate for the Industrial Packaging segment’s revenues is currently pegged at $4,503 million, suggesting an increase from the prior-year quarter’s reported figure of $4,056 million. Solid demand for corrugated and containerboard packaging is likely to have favored the segment’s sales. However, escalating input costs and operating costs might have dented the segment’s margins. The segment’s operating profit for the quarter is projected to increase 24% year over year to $505 million. The segment is likely to have witnessed improved price and mix and lower maintenance outage expenses in the quarter.
The Global Cellulose Fibers business has been witnessing solid consumer demand for absorbent pulp products. However, the segment’s pulp shipments might have been affected by port congestion and vessel delays. The Zacks Consensus Estimate for the segment’s second-quarter revenues is pegged at $755 million, suggesting an improvement of 13% from the year-ago quarter’s levels. Higher input costs and operational costs might have eroded the segment’s performance in the period under review. The segment is likely to incur an operating loss of $3.04 million for the second quarter against the prior-year quarter’s operating earnings of $10 million.
International Paper Company Price and EPS Surprise
International Paper Company price-eps-surprise | International Paper Company Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for International Paper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: International Paper has an Earnings ESP of -0.91%.
Zacks Rank: It currently carries a Zacks Rank #2.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Shares of International Paper have fallen 26.1% in the past year compared with the industry's fall of 20%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some other Basic Materials stocks which you may consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +11.87% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Albemarle's second-quarter earnings has been revised 11.7% upward over the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.94.
Celanese Corporation (CE - Free Report) , scheduled to release earnings on Jul 28, has an Earnings ESP of +0.89% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Celanese’s second-quarter earnings has been revised 2% upward over the past 60 days. The Zacks Consensus Estimate for CE’s earnings for the quarter is currently pegged at $4.58.
Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for CBT’s second-quarter earnings has been revised 1.3% downward over the past 60 days. The consensus estimate for Cabot’s earnings for the second quarter is pegged at $1.53.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.