International Paper Earnings: Here’s Why Shares are Down Now
International Paper Co. (NYSE:IP) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.39%.
International Paper Co. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 14.04% to $0.65 in the quarter versus EPS of $0.57 in the year-earlier quarter.
Revenue: Rose 6.54% to $7.09 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: International Paper Co. reported adjusted EPS income of $0.65 per share. By that measure, the company missed the mean analyst estimate of $0.74. It beat the average revenue estimate of $7.05 billion.
Quoting Management: “Industrial Packaging posted solid results driven by improved pricing and synergies, however, the company’s overall performance in the quarter was muted by seasonally slow demand across our global operations, weak earnings from xpedx and an unfavorable foreign exchange swing at Ilim,” said John Faraci, Chairman and Chief Executive Officer. “Looking ahead, peak annual maintenance outage spending and expansion project ramp-up costs at Ilim will impact the second quarter. Earnings runway from our strategic projects and announced pricing initiatives will position the company to deliver step-change financial performance in the second half of 2013, regardless of what looks to be a continued slow and uneven global economy.”
Key Stats (on next page)…