Analysts surveyed by Thomson Reuters expect earnings of 91 cents a share on revenue of $6 billion for the third quarter. For the third quarter of 2013 International Paper reported earnings of $1.05 a share and revenue of $7.4 billion, while analysts' expected earnings of $1.05 a share and revenue of $7.47 billion.
For the second quarter International Paper reported earnings of 95 cents a share, beating analysts' estimates of 83 cents a share. The company reported revenue of $7.21 billion for the quarter, below analysts' estimates of $7.35 billion.
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TheStreet Ratings team rates INTL PAPER CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTL PAPER CO (IP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. Among the primary strengths of the company is its solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- INTL PAPER CO's earnings per share declined by 26.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INTL PAPER CO increased its bottom line by earning $3.01 versus $1.71 in the prior year. This year, the market expects an improvement in earnings ($3.36 versus $3.01).
- IP, with its decline in revenue, slightly underperformed the industry average of 0.6%. Since the same quarter one year prior, revenues slightly dropped by 1.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for INTL PAPER CO is rather low; currently it is at 21.11%. Regardless of IP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.23% trails the industry average.
- Net operating cash flow has decreased to $529.00 million or 29.27% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, INTL PAPER CO has marginally lower results.
- You can view the full analysis from the report here: IP Ratings Report