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
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!
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