International Paper Set to Report Q3 Earnings: What's in Store?

Core Viewpoint - International Paper Company (IP) is expected to report third-quarter 2024 results on October 31, with projected revenues of $4.67 billion, reflecting a 1.2% year-over-year growth, while earnings per share are estimated at 24 cents, indicating a significant decline of 62.5% from the previous year [1]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for IP's third-quarter revenues is $4.67 billion, showing a 1.2% increase from the prior year [1]. - The earnings estimate for the third quarter is 24 cents per share, which represents a 62.5% decline year-over-year [1]. Earnings Surprise History - International Paper has beaten the Zacks Consensus Estimates in three of the last four quarters, with an average surprise of 10.1% [3]. Earnings Prediction Model - The model predicts an earnings beat for International Paper this season, supported by a positive Earnings ESP of +6.25% and a Zacks Rank of 2 (Buy) [5][6]. Segment Performance Insights - The Industrial Packaging segment is expected to see a year-over-year volume improvement in Saturated Kraft (9%) and Gypsum/Release Kraft (1.2%), but a decline in corrugating packaging volumes (5.1%) may offset these gains [7]. - Overall volumes for the Industrial Packaging segment are projected at 3,926 thousand short tons, indicating a 0.5% year-over-year dip, while containerboard volumes are expected to grow by 14.8% to 777 thousand short tons [8]. - Average realized pricing for the Industrial Packaging segment is anticipated to be 1% higher year-over-year, with revenues expected to improve by 0.8% to $3.82 billion, despite a projected 59.7% drop in quarterly operating profit to $131 million due to rising input costs [9]. - The Global Cellulose Fibers segment is projected to have volumes of 679 thousand metric tons, reflecting a 1.8% year-over-year decline, with revenues estimated at $714 million, a 1.4% decrease from the previous year [10]. Share Price Performance - International Paper's shares have increased by 52.5% over the past year, outperforming the industry growth of 50.6% [11].