Zacks Research Issues Negative Forecast for IP Earnings

Key Points

• Zacks Research lowered International Paper’s Q3 2026 EPS forecast to $0.34 from $0.48 and maintained a “Hold” rating, signaling a more cautious outlook.
• International Paper recently reported Q2 EPS of $0.04, beating estimates, but revenue fell 11.3% year over year to $6 billion and the company posted negative margins.
• Despite mixed analyst views, the stock has a “Moderate Buy” consensus rating with a $48.75 price target, while its $0.4625 quarterly dividend implies a 4.5% yield.

International Paper Company (NYSE:IP - Free Report) - Investment analysts at Zacks Research decreased their Q3 2026 EPS estimates for International Paper in a report issued on Thursday, August 13th. Zacks Research analyst Team now anticipates that the basic materials company will post earnings of $0.34 per share for the quarter, down from their previous forecast of $0.48. Zacks Research has a "Hold" rating on the stock. The consensus estimate for International Paper's current full-year earnings is $1.35 per share. Zacks Research also issued estimates for International Paper's Q4 2026 earnings at $0.79 EPS, Q1 2027 earnings at $0.60 EPS, FY2027 earnings at $2.75 EPS, Q1 2028 earnings at $0.74 EPS and FY2028 earnings at $3.47 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 EPS for the quarter, topping the consensus estimate of ($0.04) by $0.08. International Paper had a negative net margin of 14.20% and a negative return on equity of 1.09%. The business had revenue of $6 billion during the quarter, compared to analyst estimates of $6.19 billion. During the same period in the prior year, the business earned $0.20 EPS. The company's revenue for the quarter was down 11.3% on a year-over-year basis.

Other analysts have also issued reports about the stock. Citigroup raised their price objective on shares of International Paper from $43.00 to $48.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Wall Street Zen downgraded International Paper from a "hold" rating to a "sell" rating in a report on Sunday, August 9th. Bank of America lowered International Paper from a "buy" rating to a "neutral" rating and set a $41.00 target price for the company. in a research report on Tuesday, July 14th. Wells Fargo & Company raised their target price on International Paper from $42.00 to $46.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. Finally, Royal Bank Of Canada raised their price objective on International Paper from $48.00 to $52.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. Nine analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $48.75.

International Paper Price Performance

Shares of NYSE IP opened at $41.22 on Friday. International Paper has a 1 year low of $29.26 and a 1 year high of $50.25. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.10 and a quick ratio of 0.84. The company's 50-day moving average is $38.40 and its 200 day moving average is $37.92. The stock has a market capitalization of $21.83 billion, a P/E ratio of -6.32 and a beta of 0.94.

International Paper Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, August 14th will be paid a $0.4625 dividend. This represents a $1.85 annualized dividend and a dividend yield of 4.5%. The ex-dividend date is Friday, August 14th. International Paper's dividend payout ratio is currently -28.37%.

Insider Activity at International Paper

In related news, CAO Holly G. Goughnour sold 3,500 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $41.96, for a total value of $146,860.00. Following the completion of the transaction, the chief accounting officer directly owned 34,248 shares in the company, valued at $1,437,046.08. The trade was a 9.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP William Thomas Hamic sold 24,500 shares of the company's stock in a transaction that occurred 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 transaction, the vice president directly owned 106,952 shares in the company, valued at $4,406,422.40. This trade represents a 18.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.21% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in International Paper during the second quarter valued at $1,940,896,000. Bank of New York Mellon Corp purchased a new stake in International Paper during the second quarter valued at approximately $689,498,000. Capital International Investors boosted its holdings in shares of International Paper by 29.4% in the 4th quarter. Capital International Investors now owns 63,413,335 shares of the basic materials company's stock worth $2,498,013,000 after purchasing an additional 14,422,616 shares during the period. Atlas FRM LLC bought a new stake in International Paper in the second quarter worth $374,904,000,000. Finally, Franklin Resources Inc. increased its position in International Paper by 81.6% during the fourth quarter. Franklin Resources Inc. now owns 14,832,952 shares of the basic materials company's stock valued at $584,270,000 after acquiring an additional 6,663,986 shares during the last quarter. Hedge funds and other institutional investors own 81.95% of the company's stock.

International Paper Company Profile

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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