International Paper (IP) Reports Q4 Loss, Lags Revenue Estimates

Core Viewpoint - International Paper reported a quarterly loss of $0.02 per share, outperforming the Zacks Consensus Estimate of a loss of$ 0.07, and showing a significant decline from earnings of $0.41 per share a year ago, indicating a 71.43% earnings surprise [1] Financial Performance - The company posted revenues of$ 4.58 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.03%, and showing a slight decrease from year-ago revenues of $4.6 billion [2] - Over the last four quarters, International Paper has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - International Paper shares have increased approximately 7.7% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is$ 0.44 on revenues of $4.77 billion, and for the current fiscal year, it is$ 3.03 on revenues of $19.66 billion [7] - The estimate revisions trend for International Paper is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Paper and Related Products industry is currently ranked in the top 15% of over 250 Zacks industries, indicating a strong outlook for stocks within this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]