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With a market cap of $25.9 billion. International Paper Company (IP) is a leading global producer of renewable fiber-based packaging and pulp products. The company, headquartered in Memphis, Tennessee, operates manufacturing facilities across North America, Latin America, Europe, and North Africa.
IP is all set to announce its fiscal Q1 earnings results on Wednesday, Apr. 30. Ahead of this event, analysts predict IP’s profit to jump 129.4% year over year to $0.39 per share. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. Nevertheless, in the recent quarter, the company surpassed the consensus estimate by 71.4%.
For fiscal 2025, analysts forecast IP to report EPS of $2.66, up 135.4% from $1.13 in fiscal 2024.
Over the past 52 weeks, IP has climbed 20.8%, outperforming the broader S&P 500 Index's ($SPX) 2.1% return and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 5.2% returns over the same time frame.
On Mar. 25, International Paper shares surged over 6%, leading S&P 500 gainers, after unveiling strong growth targets at its annual investor day. The company projected 2025 revenue of approximately $27 billion, exceeding the consensus estimate of $24.6 billion. It also expects 2027 net sales of $26 billion to $28 billion and free cash flow of $2 billion - $2.5 billion. IP also emphasized operational efficiency, noting it has shut down seven plants without affecting customers and plans to redirect resources toward higher-value segments. The upbeat outlook follows a leadership change and its recent merger with DS Smith, aimed at enhancing global reach and profitability.
Analysts' consensus view on International Paper stock is reasonably bullish, with a "Moderate Buy" rating overall. Among 11 analysts covering the stock, six suggest a "Strong Buy," one gives a "Moderate Buy," three recommend a "Hold," and the remaining analyst gives it a “Strong Sell.”
The average analyst price target for IP is $58.70, suggesting a potential upside of 27.1% from current price levels.
