Zacks Research Issues Optimistic Outlook for IP Earnings

Key Points

• Zacks Research raised International Paper’s Q1 2027 EPS estimate to $0.66 from $0.64, while maintaining a “Hold” rating. The firm projects full-year 2027 EPS of $2.86 and 2028 EPS of $3.57.
• International Paper’s latest quarter exceeded expectations with EPS of $0.04 versus a consensus loss of $0.04, but revenue fell 11.3% year over year to $6 billion and the company remained unprofitable.
• Investor focus remains on the EMEA packaging business: unsolicited bids could provide an alternative to the planned spin-off, although no deal has been reached and a sale could crystallize a loss on the DS Smith assets. The company also declared a quarterly dividend of $0.4625 per share, representing a 5.4% yield.

International Paper Company (NYSE:IP - Free Report) - Stock analysts at Zacks Research increased their Q1 2027 earnings estimates for International Paper in a research report issued to clients and investors on Friday, October 16th. Zacks Research analyst Team now anticipates that the basic materials company will post earnings per share of $0.66 for the quarter, up from their previous estimate of $0.64. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for International Paper's current full-year earnings is $1.28 per share. Zacks Research also issued estimates for International Paper's Q2 2027 earnings at $0.69 EPS, Q3 2027 earnings at $0.74 EPS, Q4 2027 earnings at $0.77 EPS, FY2027 earnings at $2.86 EPS, Q1 2028 earnings at $0.77 EPS, Q2 2028 earnings at $0.80 EPS, Q3 2028 earnings at $1.02 EPS and FY2028 earnings at $3.57 EPS.

International Paper (NYSE:IP - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The basic materials company reported $0.04 earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.08. The company had revenue of $6 billion for the quarter, compared to analysts' expectations of $6.19 billion. International Paper had a negative net margin of 14.20% and a negative return on equity of 1.09%. International Paper's revenue for the quarter was down 11.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.20 earnings per share.

A number of other equities research analysts have also commented on the company. Weiss Ratings lowered International Paper from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, October 8th. UBS Group decreased their price target on International Paper from $47.00 to $35.00 and set a "neutral" rating for the company in a research note on Monday, October 5th. JPMorgan Chase & Co. raised their price objective on International Paper from $61.00 to $62.00 and gave the stock an "overweight" rating in a research report on Wednesday, September 23rd. Bank of America upgraded International Paper from a "neutral" rating to a "buy" rating and set a $46.00 price objective for the company in a research report on Friday, September 11th. Finally, Royal Bank Of Canada lifted their price objective on International Paper from $48.00 to $52.00 and gave the stock an "outperform" rating in a research note on Friday, July 31st. Ten investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $46.90.

International Paper Stock Up 0.2%

Shares of NYSE:IP opened at $34.12 on Monday. The firm has a market cap of $18.07 billion, a P/E ratio of -5.23, a P/E/G ratio of 4.43 and a beta of 0.93. The company has a quick ratio of 0.84, a current ratio of 1.10 and a debt-to-equity ratio of 0.57. International Paper has a 12-month low of $29.26 and a 12-month high of $50.25. The business has a fifty day simple moving average of $36.23 and a 200 day simple moving average of $36.01.

International Paper Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 16th will be paid a dividend of $0.4625 per share. The ex-dividend date of this dividend is Monday, November 16th. This represents a $1.85 annualized dividend and a yield of 5.4%. International Paper's dividend payout ratio is currently -28.37%.

Insider Buying and Selling at International Paper

In other International Paper news, VP William Hamic sold 24,500 shares of the firm's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $41.20, for a total value of $1,009,400.00. Following the completion of the sale, the vice president directly owned 106,952 shares in the company, valued at approximately $4,406,422.40. This trade represents a 18.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Holly G. Goughnour sold 3,500 shares of International Paper stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $41.96, for a total transaction of $146,860.00. Following the completion of the sale, the chief accounting officer directly owned 34,248 shares of the company's stock, valued at approximately $1,437,046.08. This trade represents a 9.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.21% of the stock is owned by corporate insiders.

Institutional Trading of International Paper

Several large investors have recently made changes to their positions in the company. MV Capital Management Inc. acquired a new position in International Paper during the 4th quarter worth approximately $25,000. Aberdeen Wealth Management LLC bought a new position in International Paper in the second quarter worth approximately $27,000. Ascentis Independent Advisors bought a new position in International Paper in the first quarter worth approximately $28,000. Delta Asset Management LLC TN acquired a new stake in International Paper in the second quarter valued at approximately $31,000. Finally, Transamerica Financial Advisors LLC acquired a new stake in International Paper in the second quarter valued at approximately $36,000. 81.95% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting International Paper

Here are the key news stories impacting International Paper this week:

• Positive Sentiment: International Paper confirmed that it has received unsolicited bids for its EMEA Packaging Business. Investors view potential sale proceeds as a possible value-unlocking alternative to the company’s planned spin-off of the business into a separate public company. International Paper Confirms Unsolicited Bids for EMEA Packaging Unit Alongside Planned Spin-off
• Positive Sentiment: Reports that private-equity firms are exploring multibillion-dollar offers for the European packaging operations triggered a sharp increase in IP shares in the prior session. A sale could provide a faster and potentially more certain path to monetizing the DS Smith-related assets than a standalone separation. Private Equity Firms Exploring Deals for International Paper’s European Packaging Business
• Neutral Sentiment: IP is evaluating unsolicited interest while continuing to consider its previously announced EMEA spin-off plan. The company has not announced a definitive agreement, leaving investors focused on the bid amounts, transaction structure, timing and potential regulatory or execution risks. Statement Regarding Possible EMEA Packaging Business Sale
• Neutral Sentiment: Analysts are approaching the upcoming third-quarter results cautiously, with the decision on the EMEA business likely to remain a central catalyst. The stock still appears below some fair-value estimates after its earlier decline, but investors may wait for management’s strategic update before reassessing valuation. International Paper Q3 Preview: Wait for the Decision on EMEA Business
• Negative Sentiment: A potential sale may crystallize a substantial loss compared with the price International Paper paid for the DS Smith assets only two years ago. That prospect raises concerns about the strategic cost of the acquisition and could weigh on sentiment if bids fall short of expectations. Why International Paper Rallied Today

About International Paper

International Paper NYSE: IP is a global producer of sustainable packaging, pulp and paper products. Its offerings include corrugated packaging and containerboard used to protect and transport goods, as well as absorbent cellulose fibers and other fiber-based materials used in personal care, healthcare, foodservice and industrial applications.

The company serves customers across North America and Europe, with products sold to manufacturers, retailers, consumer-goods companies and other commercial customers.

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