International Paper Set to Report Q2 Earnings: What's in Store?

Core Insights - International Paper Company (IP) is set to report its second-quarter 2025 results on July 31, with expected revenues of $6.8 billion, reflecting a 43% year-over-year growth [1][6] - The earnings estimate for IP has decreased by 2.6% over the past 60 days to 38 cents per share, indicating a 30% decline compared to the previous year [1][6] Revenue and Earnings Expectations - The projected revenue of $6.8 billion for Q2 is primarily driven by the acquisition of DS Smith [6] - The Packaging Solutions EMEA segment is expected to see net sales rise to $2.23 billion from $330 million year-over-year, with an anticipated operating profit of $72.9 million [6][9] - Packaging Solutions North America is projected to have net sales of $4.01 billion, a 10.4% increase year-over-year, with an operating profit of $309 million [10] - The Global Cellulose Fibers segment is expected to report a 9.1% decline in net sales to $652 million, with an operating loss of $4.1 million [10] Market Dynamics - The company has been facing weak packaging demand due to inflationary pressures affecting consumer priorities, leading to reduced demand for packaging [11] - However, stable demand in the e-commerce sector and strategic initiatives by the company may help mitigate some of these challenges [11] Earnings Surprise History - International Paper has beaten the Zacks Consensus Estimates in three of the last four quarters, with an average surprise of 39.5% [3][4] - The current Earnings ESP for IP stands at +1.31%, indicating a potential for an earnings beat [7] Stock Performance - Over the past year, IP shares have increased by 23.7%, compared to the industry's growth of 30.6% [12] Strategic Acquisition - The completion of the DS Smith acquisition on January 31, 2025, has positioned International Paper as a global leader in sustainable packaging solutions, impacting its financial reporting structure [8]