International Paper (NYSE:IP) Releases Quarterly Earnings Results, Misses Expectations By $0.18 EPS

Key Points

• International Paper reported $0.20 earnings per share (EPS), falling short of expectations by $0.18 EPS, despite achieving a revenue of $6.77 billion, surpassing analysts' estimates of $6.64 billion.
• The company announced a quarterly dividend of $0.4625 per share, translating to an annualized dividend yield of 4.1%, with a payout ratio of 158.12%.
• Stock performance saw a decline, with shares trading at $45.07 on Friday, down from a 52-week high of $60.36.

International Paper (NYSE:IP - Get Free Report) issued its quarterly earnings results on Thursday. The basic materials company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($0.18), Zacks reports. International Paper had a return on equity of 4.05% and a net margin of 1.99%. The company had revenue of $6.77 billion for the quarter, compared to analysts' expectations of $6.64 billion. During the same quarter in the previous year, the business earned $0.55 EPS. The company's revenue for the quarter was up 42.9% on a year-over-year basis.

International Paper Stock Performance

IP stock traded down $1.67 during midday trading on Friday, reaching $45.07. 2,709,200 shares of the company's stock traded hands, compared to its average volume of 6,656,366. International Paper has a 52-week low of $43.27 and a 52-week high of $60.36. The stock has a market cap of $23.79 billion, a P/E ratio of 38.52, a PEG ratio of 0.49 and a beta of 1.02. The company has a current ratio of 1.33, a quick ratio of 0.96 and a debt-to-equity ratio of 0.51. The stock's 50-day moving average is $49.25 and its 200 day moving average is $50.88.

International Paper Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Friday, August 15th will be issued a dividend of $0.4625 per share. This represents a $1.85 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date of this dividend is Friday, August 15th. International Paper's dividend payout ratio is currently 158.12%.

Analysts Set New Price Targets

A number of research analysts recently weighed in on IP shares. Wall Street Zen upgraded shares of International Paper from a "sell" rating to a "hold" rating in a research note on Friday, June 27th. UBS Group started coverage on shares of International Paper in a report on Wednesday, June 4th. They issued a "buy" rating and a $60.00 price target for the company. Truist Financial set a $59.00 price target on shares of International Paper in a report on Wednesday, May 28th. Finally, Wells Fargo & Company reissued an "underweight" rating and issued a $43.00 price target (up from $40.00) on shares of International Paper in a report on Thursday, July 10th. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, International Paper presently has an average rating of "Hold" and a consensus price target of $55.65.

Insider Buying and Selling

In other news, CAO Holly G. Goughnour sold 7,500 shares of the stock in a transaction on Monday, May 5th. The shares were sold at an average price of $44.85, for a total value of $336,375.00. Following the completion of the sale, the chief accounting officer directly owned 31,525 shares of the company's stock, valued at $1,413,896.25. This represents a 19.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 0.35% of the company's stock.

Hedge Funds Weigh In On International Paper

An institutional investor recently raised its position in International Paper stock. Intech Investment Management LLC grew its holdings in International Paper Company (NYSE:IP - Free Report) by 100.5% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 32,025 shares of the basic materials company's stock after buying an additional 16,055 shares during the period. Intech Investment Management LLC's holdings in International Paper were worth $1,709,000 as of its most recent filing with the Securities & Exchange Commission. Institutional investors own 81.95% of the company's stock.

International Paper Company Profile

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others.

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