Zacks Research Issues Negative Estimate for IP Earnings

Key Points

• Zacks Research cut its Q2 2026 earnings estimate for International Paper to a loss of $0.02 per share from a prior estimate of $0.01, and it kept a Strong Sell rating on the stock.
• International Paper’s most recent quarterly results came in below expectations, with EPS of $0.15 versus the $0.18 consensus and revenue of $5.97 billion slightly under estimates, though revenue was still up 13.4% year over year.
• Despite mixed fundamentals, the stock has continued to draw attention from analysts and investors: shares rose 0.6%, institutional ownership remains high at 81.95%, and the company recently paid a 4.8% dividend yield.

International Paper Company (NYSE:IP - Free Report) - Investment analysts at Zacks Research decreased their Q2 2026 earnings estimates for International Paper in a report issued on Tuesday, June 30th. Zacks Research analyst Team now forecasts that the basic materials company will post earnings of ($0.02) per share for the quarter, down from their previous estimate of $0.01. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for International Paper's current full-year earnings is $1.38 per share. Zacks Research also issued estimates for International Paper's Q3 2026 earnings at $0.53 EPS, FY2026 earnings at $1.32 EPS, Q1 2027 earnings at $0.54 EPS, Q2 2028 earnings at $0.81 EPS and FY2028 earnings at $3.28 EPS.

International Paper (NYSE:IP - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The basic materials company reported $0.15 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.03). International Paper had a negative net margin of 13.42% and a negative return on equity of 0.49%. The business had revenue of $5.97 billion for the quarter, compared to the consensus estimate of $6.02 billion. During the same quarter last year, the business earned $0.17 EPS. International Paper's revenue for the quarter was up 13.4% compared to the same quarter last year.

Several other research analysts have also commented on IP. Seaport Research Partners upgraded International Paper from a "neutral" rating to a "buy" rating and set a $39.00 price target for the company in a research report on Friday, May 1st. Truist Financial decreased their price target on International Paper from $48.00 to $44.00 and set a "buy" rating for the company in a research note on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft assumed coverage on International Paper in a research note on Wednesday, April 1st. They issued a "hold" rating and a $38.00 target price on the stock. UBS Group decreased their target price on International Paper from $40.00 to $32.00 and set a "neutral" rating for the company in a research report on Monday, May 4th. Finally, Royal Bank Of Canada lowered their target price on shares of International Paper from $48.00 to $45.00 and set an "outperform" rating for the company in a research note on Friday, May 1st. Nine analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, International Paper has a consensus rating of "Moderate Buy" and a consensus target price of $43.73.

International Paper Stock Up 0.6%

Shares of NYSE IP opened at $38.32 on Thursday. The company has a current ratio of 1.21, a quick ratio of 0.94 and a debt-to-equity ratio of 0.55. International Paper has a 12-month low of $29.26 and a 12-month high of $56.13. The firm's 50-day moving average price is $33.95 and its 200-day moving average price is $38.15. The stock has a market capitalization of $20.29 billion, a price-to-earnings ratio of -6.02 and a beta of 0.94.

Institutional Investors Weigh In On International Paper

Large investors have recently modified their holdings of the business. Ballast Advisors LLC purchased a new position in International Paper in the first quarter valued at about $34,000. NewEdge Advisors LLC grew its stake in International Paper by 231.2% during the 1st quarter. NewEdge Advisors LLC now owns 39,585 shares of the basic materials company's stock worth $1,413,000 after buying an additional 27,634 shares during the last quarter. First Nebraska Trust Co acquired a new position in International Paper during the 1st quarter valued at about $2,654,000. Cozad Asset Management Inc. raised its stake in International Paper by 8.3% in the first quarter. Cozad Asset Management Inc. now owns 35,633 shares of the basic materials company's stock valued at $1,272,000 after buying an additional 2,735 shares during the last quarter. Finally, Front Street Capital Management Inc. raised its stake in International Paper by 144.1% in the first quarter. Front Street Capital Management Inc. now owns 560,974 shares of the basic materials company's stock valued at $20,027,000 after buying an additional 331,155 shares during the last quarter. Institutional investors own 81.95% of the company's stock.

Insider Buying and Selling at International Paper

In other news, Director Scott Tozier acquired 10,000 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The stock was purchased at an average cost of $31.30 per share, for a total transaction of $313,000.00. Following the completion of the acquisition, the director directly owned 10,025 shares of the company's stock, valued at $313,782.50. The trade was a 40,000.00% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.21% of the stock is owned by insiders.

International Paper Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Friday, May 22nd were paid a dividend of $0.4625 per share. The ex-dividend date was Friday, May 22nd. This represents a $1.85 annualized dividend and a dividend yield of 4.8%. International Paper's dividend payout ratio (DPR) is currently -29.09%.

About International Paper

International Paper is a global producer of renewable fiber-based products, focused primarily on pulp, paper, and packaging. The company manufactures containerboard and corrugated packaging used for shipping and retail display, as well as a range of specialty papers and pulp products that serve industrial, consumer goods, and e-commerce customers. Its product portfolio is oriented toward large-scale packaging solutions, tissue and paper grades, and raw pulp for a variety of manufacturing uses.

Founded in 1898, International Paper is headquartered in Memphis, Tennessee, and is one of the largest and longest-established companies in the forest products sector.

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