International Paper (IP) Reports Q3 Loss, Lags Revenue Estimates

Core Insights - International Paper reported a quarterly loss of $0.43 per share, missing the Zacks Consensus Estimate of $0.53, and compared to earnings of $0.44 per share a year ago, representing an earnings surprise of -181.13% [1] - The company posted revenues of $6.22 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 9.68%, and compared to year-ago revenues of $4.69 billion [2] - The stock has underperformed the market, losing about 17.8% since the beginning of the year, while the S&P 500 gained 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.59 on revenues of $6.54 billion, and for the current fiscal year, it is $1.53 on revenues of $26.09 billion [7] - The estimate revisions trend for International Paper was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Paper and Related Products industry is currently in the bottom 6% of the Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]