One analyst thinks this stock is a buy with or without a buyout proposal.Investors have sent shares of International Paper (IP 6.44%) higher in recent weeks on reports that the company has attracted the attention of a buyer. At least one Wall Street analyst sees reason to give the stock a look regardless of the merger and acquisition talk.Shares traded up 6% as of 2:30 p.m. ET on Thursday after the company was upgraded at Jefferies Financial Group (JEF -1.78%).There's more than just a possible merger hereIn ...

 Jamie A. Beggs and Scott A. Tozier to Join as Newest Board Members Ilene S. Gordon to Retire from the Board MEMPHIS, Tenn., May 22, 2024 /PRNewswire/ -- International Paper ("IP") (NYSE: IP) announced that Jamie A. Beggs and Scott A. Tozier have been elected to IP's Board of Directors, effective May 21, 2024. The company also announced that Ilene S. Gordon has retired from the Board citing personal and health reasons, effective May 21, 2024. Ms. Beggs, age 47, currently serves as Senior Vice President an ...

International Paper announced the progress on its Vision 2030 sustainability targets and published reporting against the Sustainability Accounting Standards Board (SASB) disclosures and Task Force on Climate-related Financial Disclosures (TCFD) recommendations.MEMPHIS, Tenn., May 16, 2024 /PRNewswire/ -- International Paper released its 2023 Sustainability Report, which illustrates the progress made on our Vision 2030 goals and outlines our commitment to building a better future for people, the planet and o ...

Could IP go from buyer to target?Brazilian paper giant Suzano (SUZ -11.45%) has reportedly approached U.S. rival International Paper (IP 5.62%) about an all-cash $15 billion takeover. Shares of IP jumped 11.9% higher when the report surfaced, only to fall back to up 5% in the final hour of trading on Tuesday.Could International Paper go from buyer to seller?There's been a wave of consolidation in the paper and packaging industry. Last year, Smurfit Kappa Group agreed to acquire WestRock for $11.2 billion, a ...

NEW YORK, May 03, 2024 (GLOBE NEWSWIRE) -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating potential claims related to the below-listed proposed mergers. Kuehn Law may seek additional disclosures or other relief on behalf of the shareholders of these companies. Kuehn Law is investigating whether the Boards of the below companies 1) acted to maximize shareholder value, 2) failed to disclose material information, and 3) conducted a fair process: International Paper Company (NYSE:IP) click ...

A downtrend has been apparent in International Paper (IP) lately with too much selling pressure. The stock has declined 13.3% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicator ...

Earnings Performance - Net earnings in Q1 2024 were $56 million ($0.16 per diluted share), compared to a loss of $(284) million ($(0.82) per diluted share) in Q4 2023 and earnings of $172 million ($0.49 per diluted share) in Q1 2023[110] - Adjusted operating earnings in Q1 2024 were $61 million ($0.17 per diluted share), compared to $142 million ($0.41 per diluted share) in Q4 2023 and $185 million ($0.53 per diluted share) in Q1 2023[110] - Earnings from continuing operations in Q1 2024 benefited from higher average sales prices and favorable mix ($47 million) compared to Q4 2023[124] - Compared to Q1 2023, Q1 2024 benefited from lower operating costs ($15 million) and lower raw material and freight costs ($48 million)[126] - Adjusted operating profit was $169 million in Q1 2024, down from $257 million in Q4 2023 and $306 million in Q1 2023[130] Sales and Volume Trends - Sales price indexes improved across the portfolio in Q1 2024, with a $40 per ton increase in February expected to flow through sales contracts in Q2 and Q3 2024[112] - Volume in the North American Industrial Packaging business was lower in Q1 2024 due to seasonally lower shipments and impacts from a January freeze[112] - Sales volumes for Industrial Packaging were 3,991 thousand short tons in Q1 2024, up from 3,914 thousand short tons in Q1 2023[136] - Corrugated Packaging sales volumes were 2,232 thousand short tons in Q1 2024, down from 2,381 thousand short tons in Q1 2023[136] - Global Cellulose Fibers sales volumes were 729 thousand metric tons in Q1 2024, up from 688 thousand metric tons in Q1 2023[136] Segment Performance - Total business segment operating profits were $169 million in Q1 2024, compared to $257 million in Q4 2023 and $306 million in Q1 2023[131] - Industrial Packaging segment operating profit was $216 million in Q1 2024, while Global Cellulose Fibers segment had a loss of $47 million[130] - Industrial Packaging net sales for Q1 2024 were $3.808 billion, 1% lower than Q4 2023 and 7% lower than Q1 2023[150] - Industrial Packaging operating profit in Q1 2024 was $216 million, 31% lower than Q4 2023 and 33% lower than Q1 2023[150] - North American Industrial Packaging sales in Q1 2024 were $3.486 billion, with operating profit of $192 million[151] - EMEA Industrial Packaging sales in Q1 2024 were $348 million, with operating profit of $24 million[153] - Global Cellulose Fibers net sales in Q1 2024 were $704 million, 7% higher than Q4 2023 and 13% lower than Q1 2023[156] - Global Cellulose Fibers operating loss in Q1 2024 was $47 million, $11 million lower than Q4 2023 and $31 million higher than Q1 2023[156] Costs and Expenses - Full-scale mill annual maintenance outage expense is expected to increase in Q2 2024, including costs associated with the Riverdale mill outage[114] - Total maintenance and economic downtime in Q1 2024 was 126,000 short tons lower than Q4 2023 for Global Cellulose Fibers[156] - Planned maintenance downtime costs in Q1 2024 were lower compared to Q4 2023 for both Industrial Packaging and Global Cellulose Fibers[152][156] - Input costs for Global Cellulose Fibers in Q1 2024 were higher primarily for energy, but lower for chemicals, wood, and energy compared to Q1 2023[156] Financial Position and Cash Flow - Net sales in Q1 2024 were $4.6 billion, flat compared to Q4 2023 but down from $5.0 billion in Q1 2023[123] - Cash provided by operations increased to $395 million in Q1 2024, up from $345 million in Q1 2023, driven by timing of mill outage spending and inventory adjustments[157] - Capital investments totaled $251 million in Q1 2024, down from $341 million in Q1 2023, with full-year 2024 capital spending expected to be $800 million to $1.0 billion[158] - Debt decreased by $3 million in Q1 2024, compared to a $257 million increase in Q1 2023[158] - Contractual obligations for future debt payments include $138 million in 2024, $189 million in 2025, $142 million in 2026, $332 million in 2027, $670 million in 2028, and $4.1 billion thereafter[159] - The company holds long-term credit ratings of BBB (S&P) and Baa2 (Moody's), with short-term ratings of A2 (S&P) and P2 (Moody's)[159] - Credit agreements total $1.9 billion, including a $1.4 billion bank credit agreement and a $500 million receivables securitization program[160] - The company repurchased $22 million of common stock in Q1 2024, with $2.96 billion remaining authorized for share repurchases as of March 31, 2024[163] - Cash dividend payments totaled $161 million in Q1 2024, consistent with $162 million in Q1 2023, at $0.4625 per share[164] - The company expects to meet capital expenditures, debt servicing, and dividend payments with current cash balances and operating cash flows, supplemented by credit facilities[162] - The pension plan is fully funded, with no anticipated cash contributions required for the next 12 months[165] Acquisitions and Divestitures - The company announced its intent to acquire DS Smith in an all-stock transaction valued at approximately $9.9 billion on April 16, 2024[111] - The company completed the sale of its 50% equity interest in Ilim S.A. for $484 million in cash on September 18, 2023[138] Tax and Interest - Income tax provision was $27 million in Q1 2024 with an effective tax rate of 32%, compared to a $61 million benefit in Q4 2023 with a 19% rate[140][141] - Net interest expense decreased to $46 million in Q1 2024 from $52 million in Q4 2023 and $62 million in Q1 2023[144] - Operational effective tax rate was 31% in Q1 2024, lower than 34% in Q4 2023 due to increased deferred tax valuation allowance[140]

Financial Data and Key Metrics - Q1 2024 earnings were generally in line with the outlook, representing a trough due to seasonally low volumes, higher OCC costs, and the majority impact from 2023 sales price index declines [6] - Earnings were negatively impacted by approximately $38 million from the January winter freeze and $14 million from a fire at the Ixtac, Mexico box plant [6] - Free cash flow for the quarter was $144 million, compared to $193 million in Q1 2023, which included a final IRS settlement [8] - Operating earnings per share were $0.17, down from $0.41 in Q4 2023, with $0.10 per share impact from the winter freeze and fire [9] - Price and mix benefits contributed $0.14 per share, partially offset by prior sales price index declines [9] - Volume was unfavorable by $0.08 per share due to seasonally low shipments and the winter storm [9] - Operations and costs were unfavorable by $0.13 per share, including $0.07 per share from the winter freeze and fire [10] Business Line Data and Key Metrics Industrial Packaging - Price and mix benefits contributed approximately $110 million, partially offset by $53 million from prior sales price index declines [11] - Volume was lower due to seasonally low shipments and the January freeze [12] - Operations and costs included a $34 million unfavorable impact from the winter freeze and fire, with additional cost inflation and lower fixed cost absorption [13] - Demand trends show eCommerce up mid-single digits year-over-year, with stable food and beverage demand and improving fresh food and protein segments [14] - Industry box demand is expected to grow 2% to 3% in 2024 [15] Global Cellulose Fibers - Price and mix benefits were driven by higher absorbent pulp mix and reduced commodity grades [16] - Volume was flat as improved demand for absorbent pulp offset lower sales of commodity grades [16] - Operations and costs were unfavorable due to the winter freeze and cost inflation, partially offset by $12 million in fixed cost savings from mill closures [16] - Planned maintenance outages were lower by $10 million, but a $24 million outage at the Georgetown white papers machine impacted earnings [17] Market Data and Key Metrics - North American packaging demand is stable to improving, with eCommerce showing resilience and food and beverage segments remaining stable [14] - The produce segment was flat in Q1 but expected to recover in Q2, while the protein segment is improving following supply reductions [15] - The beverage segment remains under pressure due to reduced consumption of specialty beverages and bottled beer [15] Company Strategy and Industry Competition - The company is focused on accelerating margin improvement and driving profitable growth through strategic initiatives, including the Box Go-to-Market strategy and mill optimization [7] - A combination with DS Smith is seen as a catalyst for creating significant value for shareholders [7] - Investments are being made to strengthen packaging businesses and improve capabilities to serve customer needs [22] - The company is reducing exposure to commodity grades in the Global Cellulose Fibers business and aligning resources with the most attractive customers and segments [23] Management Commentary on Operating Environment and Future Outlook - Management is encouraged by positive market momentum and signs of demand recovery [5] - The company expects significant earnings improvement based on positive market trends and benefits from commercial and cost improvement initiatives [8] - The Box Go-to-Market strategy exceeded expectations in Q1, with additional opportunities expected throughout the year [22] - The company is preparing for higher utilization and increased equipment utilization, with proactive maintenance spending focused on improving productivity and efficiencies [18] Other Important Information - The company announced a CEO transition, with Andy Silvernail stepping into the role on May 1, 2024 [83] - The outgoing CEO expressed confidence in the company's future and the leadership of the new CEO [83] Q&A Session Summary Question: Benefits from the Box Go-to-Market strategy and incremental benefits in Q2 and beyond [28] - The company exceeded its initial outlook of $70 million in benefits, achieving $110 million in Q1 due to better-than-expected local improvements and investments in commercial teams [30] - Additional benefits are expected to flow through in Q2 and beyond as the strategy continues to be executed [30] Question: North American Industry Box shipment growth revision to 2%-3% in 2024 [31] - The revision reflects a conservative outlook due to a tough economic environment, but management believes growth could be closer to 3% or even 4% if the economy improves [32] Question: Operations and costs in the packaging business [35] - The $70 million negative impact in Q2 includes proactive maintenance spending and higher inflation, with additional costs related to labor, materials, and contracted services [36][37][38] Question: Market prices and corporate expenses [49] - The company does not comment on forward-looking pricing but expects the $40 per ton increase to flow through contracts over the next few quarters [50] - Corporate expenses are expected to remain within the $60 million to $80 million range for the year, with some volatility quarter-to-quarter [50] Question: EBITDA margin targets and customer mix changes [52][56] - The company aims for an EBITDA margin in the high teens (18%) on its way to 20%, with a focus on improving profitability through the Box Go-to-Market strategy [53] - The customer mix shifted during COVID, with a focus on large national accounts, but the company is now working to improve the economics of these accounts and return to more profitable regional and local customers [59][60] Question: Maintenance and investment costs [63] - Maintenance costs have increased due to inflation and targeted spending, particularly in the Box business, with a focus on reliability and productivity improvements [64][65][68] Question: Operational readiness and customer mix targets [78] - The company is seeing productivity improvements and is focused on targeted maintenance spending to support market growth [79] - The local business is expected to grow as a percentage of total business, rebalancing the mix between national and regional customers [80]

International Paper Company (IP) reported first-quarter 2024 adjusted earnings of 17 cents per share, missing the Zacks Consensus Estimate of 23 cents by a margin of 26%. The bottom line slumped 68% year over year due to a decline in volumes in corrugated packaging, as well as lower prices in both Industrial Packaging and Global Cellulose Fibers segments.Including one-time items, the company posted earnings per share of 16 cents from continuing operations in first-quarter 2024 compared with 49 cents in the ...

First Quarter 2024 Earnings April 25, 2024 Forward-Looking Statements Certain statements in this press release that are not historical in nature may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of forward-looking or conditional words such as “expects,” “anticipates,” “believes,” “estimates,” “could,” “should,” “can,” “forecast,” “intend,” “look,” “may,” “will,” “remain,” “confide ...