Zacks Research Issues Pessimistic Outlook for IP Earnings

Key Points

• Zacks Research lowered its Q3 2026 EPS estimate for International Paper to $0.51 from $0.53 and kept a Hold rating, reinforcing a cautious near-term outlook.
• International Paper’s latest quarterly results were weak, with EPS of $0.15 missing expectations and revenue of $5.97 billion coming in slightly below estimates, alongside negative net margin and return on equity.
• Despite the bearish note from Zacks, analyst sentiment is mixed: several firms still have Buy or overweight ratings, and the stock’s average target price sits at $44.06 versus a recent price around the mid-$30s.

International Paper Company (NYSE:IP - Free Report) - Equities research analysts at Zacks Research lowered their Q3 2026 earnings per share estimates for International Paper in a report released on Tuesday, July 14th. Zacks Research analyst Team now anticipates that the basic materials company will post earnings per share of $0.51 for the quarter, down from their prior estimate of $0.53. Zacks Research currently has a "Hold" 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 FY2028 earnings at $3.25 EPS.

Other analysts also recently issued reports about the company. Seaport Research Partners upgraded International Paper from a "neutral" rating to a "buy" rating and set a $39.00 price objective for the company in a research report on Friday, May 1st. UBS Group lowered their target price on International Paper from $40.00 to $32.00 and set a "neutral" rating for the company in a research note on Monday, May 4th. Wells Fargo & Company increased their target price on shares of International Paper from $39.00 to $42.00 and gave the stock an "overweight" rating in a report on Thursday, July 9th. Deutsche Bank Aktiengesellschaft began coverage on shares of International Paper in a research note on Wednesday, April 1st. They issued a "hold" rating and a $38.00 price target on the stock. Finally, Bank of America cut shares of International Paper from a "buy" rating to a "neutral" rating and set a $41.00 price objective for the company. in a research report on Tuesday. Eight research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $44.06.

International Paper Trading Up 0.9%

Shares of IP opened at $36.81 on Thursday. International Paper has a 52-week low of $29.26 and a 52-week high of $56.13. The business's fifty day moving average is $34.86 and its 200-day moving average is $38.06. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.94 and a current ratio of 1.21. The firm has a market cap of $19.49 billion, a price-to-earnings ratio of -5.79 and a beta of 0.94.

International Paper (NYSE:IP - Get Free Report) last announced 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 firm had revenue of $5.97 billion for the quarter, compared to analyst estimates of $6.02 billion. During the same quarter in the prior year, the firm earned $0.17 earnings per share. The firm's revenue for the quarter was up 13.4% on a year-over-year basis.

Institutional Investors Weigh In On International Paper

A number of institutional investors have recently made changes to their positions in IP. Capital International Investors boosted its holdings in International Paper by 29.4% in the fourth quarter. Capital International Investors now owns 63,413,335 shares of the basic materials company's stock valued at $2,498,013,000 after acquiring an additional 14,422,616 shares during the last quarter. Franklin Resources Inc. raised its holdings in International Paper by 81.6% during the 4th quarter. Franklin Resources Inc. now owns 14,832,952 shares of the basic materials company's stock worth $584,270,000 after purchasing an additional 6,663,986 shares during the last quarter. Norges Bank acquired a new position in shares of International Paper in the 4th quarter worth approximately $250,093,000. Bank of New York Mellon Corp lifted its position in shares of International Paper by 66.2% in the 1st quarter. Bank of New York Mellon Corp now owns 13,601,299 shares of the basic materials company's stock worth $485,566,000 after purchasing an additional 5,417,274 shares during the period. Finally, Atlas FRM LLC boosted its stake in shares of International Paper by 56.2% in the 4th quarter. Atlas FRM LLC now owns 5,000,000 shares of the basic materials company's stock valued at $196,950,000 after purchasing an additional 1,800,000 shares during the last quarter. Institutional investors own 81.95% of the company's stock.

Insider Activity at International Paper

In other International Paper news, Director Scott Tozier acquired 10,000 shares of International Paper stock in a transaction that occurred on Friday, May 1st. The shares were bought at an average price of $31.30 per share, with a total value of $313,000.00. Following the completion of the purchase, the director directly owned 10,025 shares in the company, valued at $313,782.50. This trade represents a 40,000.00% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Company insiders own 0.21% of the company's stock.

International Paper Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, August 14th will be issued a dividend of $0.4625 per share. This represents a $1.85 dividend on an annualized basis and a dividend yield of 5.0%. The ex-dividend date is Friday, August 14th. International Paper's payout ratio is -29.09%.

International Paper News Roundup

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

• Positive Sentiment: Truist Financial raised its price target on International Paper to $46 from $40 and reiterated a Buy rating, signaling confidence in further upside for International Paper (IP). Truist Financial Keeps Their Buy Rating on International Paper Co (IP)
• Positive Sentiment: International Paper (IP) declared a quarterly dividend of $0.4625 per share on common stock, implying a roughly 5% annualized yield and reinforcing the company’s commitment to returning cash to shareholders. International Paper Declares Quarterly Dividend
• Positive Sentiment: Zacks Research upgraded International Paper (IP) from Strong Sell to Hold, a modestly better view that may ease some bearish pressure. International Paper upgraded by Zacks Research
• Neutral Sentiment: Zacks Research slightly raised near-term earnings estimates for International Paper (IP) for Q4 2026 and Q1 2027, while trimming estimates for Q3 2027; the revisions suggest only small changes to the company’s outlook rather than a major fundamental shift.
• Negative Sentiment: Bank of America downgraded International Paper (IP) from Buy to Neutral, which may have weighed on sentiment even though the firm still sees some upside via its price target. International Paper Shares Slip After BofA Downgrades Stock to Neutral (IP)
• Negative Sentiment: Zacks Research also lowered some future earnings estimates for International Paper (IP), including Q3 2027, which could signal softer profit expectations ahead.

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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