Markets
IP

International Paper (IP) Beats Both Q4 Earnings & Revenues

With operations in North America, Europe, Latin America, Russia, Asia, and North Africa, International Paper CompanyIP is a premier paper and packaging firm. As part of its restructuring plans to increase focus on its core business, the company has divested its distribution business xpedx. The company has also inked a definitive agreement to sell its corrugated packaging business in China and Southeast Asia. IP is likely to gain from its extensive geographic footprint, wide-ranging product portfolio and a differentiated service platform.

In the last four trailing quarters, IP has beaten estimates thrice for an average surprise of 6.8%. As the extent of competition is increasing over time, investors have been eagerly awaiting for the company's latest earnings report.

Currently, IP has a Zacks Rank #2 (Buy), but that could definitely change following the fourth-quarter 2016 earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below.

Earnings: IP beat earnings. The Zacks Consensus Estimate called for EPS of 71 cents, and the company reported adjusted operating EPS of 73 cents.

International Paper Company Price and EPS Surprise

International Paper Company Price and EPS Surprise | International Paper Company Quote

Revenues: Revenues exceeded estimates. IP posted revenues of $5,381 million, compared with the Zacks Consensus Estimate of $5,314 million.

Key Stats to Note: During the quarter, IP completed the acquisition of leading timberland owner Weyerhaeuser Co's pulp business for $2.2 billion in cash. With a combined capacity of nearly 1.9 million metric tons of pulp, the transaction is likely to strengthen its position in the global fluff pulp market and augment operating cash flow. In addition, the acquisition is likely to generate annual synergies of approximately $175 million by the end of 2018 and offer a higher flexibility to manage a wide portfolio of products through superior R&D capabilities and priceless patent portfolio.

Stock Price: Shares did not show any change in the pre-market trading following the release at the time of this write-up.

Check back our full write up on this IP earnings report later!

Zacks' Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

International Paper Company (IP): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

IP

Other Topics

Earnings Investing Stocks

Latest Markets Videos