DailyIQ
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Sector:Consumer CyclicalAll sectors
Last updated 7 hours ago

IP·International Paper Company

$.
-. (-.%)
After Hours
High
$39.06
Open
$38.62
Market Cap
20.61B
52W High
$56.13
Low
$38.43
P. Close
$38.76
P/E
-
52W Low
$29.26
Fwd P/E
-
DailyIQ Est.
$40.38
Technical Score (1D)
68
BUY
News Sentiment
79
BULLISH
International Paper announced a strategic shift to streamline its North American packaging network, beginning with the shutdown of preprint operations at Richwood, KY. The company also plans to close the Aurora, IL sheet plant and converting plants in Elk Grove, CA and Barrington, NJ by the end of Q3 2026, as part of a broader capacity‑optimization effort. These moves are intended to cut excess capacity, lower operating costs, and concentrate resources on higher‑margin opportunities. In the short term, the announcement signals a tightening of IP’s cost structure, which could support improved gross margins over the next 1–10 trading days. The reduction in plant footprint may also affect supply chain dynamics, potentially tightening availability of certain paper products in the U.S. market. Traders should watch for any updates on the exact closure timeline, as delays or accelerations could alter the expected cost savings. Monitoring gross‑margin reports in the coming earnings cycle will reveal whether the network optimization translates into the projected profitability gains. Additionally, keep an eye on any commentary from management regarding the impact on operating expenses and the potential need for further restructuring. Finally, any shifts in demand for packaging materials, driven by consumer trends or macro‑economic factors, could influence how quickly the cost benefits materialize.
Earnings Summary
International Paper (IP) is a global leader in the production of fiber-based packaging and pulp products, operating within the Consumer Cyclical sector's Packaging & Containers industry. The company's core business is divided into Industrial Packaging, which supplies materials for packaging, and Global Cellulose Fibers, which produces pulp for hygiene products and specialty applications. IP provides essential, renewable materials to a broad customer base across multiple continents. International Paper's recent earnings performance has been mixed, with a notable trend of missing EPS estimates in several quarters. In Q4 2025, the company reported an actual EPS of -$0.08 against an estimate of $0.2575, and in Q3 2025, actual EPS was -$0.43 versus an estimate of $0.58905. Revenue has shown significant fluctuations, with Q2 2025 revenue reaching $6.767 billion, a substantial increase from Q1 2025's $5.901 billion, but Q3 2025 saw a decrease to $6.222 billion. The most recent reported quarter, Q1 2026, showed actual EPS of $0.15 against an estimate of $0.15708, and revenue of $5.971 billion versus an estimate of $6.250 billion. Historically, International Paper has faced challenges in consistently meeting analyst EPS expectations, with significant misses in Q4 2024, Q3 2025, and Q4 2025. While revenue figures have been substantial, the growth trajectory appears inconsistent, with periods of significant increase followed by declines. The company's earnings performance has been characterized by a downward trend in profitability over the past five years, indicating ongoing operational or market-related pressures. Recent news highlights a significant strategic investment in a new corrugated packaging plant in Brandon, Mississippi, representing a $225 million commitment to enhance sustainable packaging capacity. This development underscores IP's focus on its packaging segment and modernization efforts. However, Diamond Hill Capital's Large Cap Strategy exited its position in International Paper during Q1 2026, citing underperformance and a strategic shift, although specific reasons for the IP exit were not detailed. This institutional action suggests potential concerns among some investors regarding the company's outlook. Looking ahead, investors will be closely monitoring the execution and impact of the new Mississippi packaging plant on International Paper's production capacity and market reach. Key will be the company's ability to overcome historical EPS misses and demonstrate consistent revenue growth, particularly in its core packaging segment. Investors should also watch for any further insights into institutional investor sentiment and the company's strategy to address profitability challenges.

EPS

EstBeatMiss
$-0.58$-0.25$0.08$0.41$0.74Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$-0.04 - -
Q1'26$0.16$0.15-4.5%
Q4'25$0.26$-0.08-131.1%
Q3'25$0.59$-0.43-173.0%
Q2'25$0.41$0.20-51.1%
Q1'25$0.37$0.23-38.0%

Revenue

EstBeatMiss
$5.8B$6.1B$6.3B$6.6B$6.9BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$6.4B - -
Q1'26$6.3B$6.0B-4.5%
Q4'25$6.1B$6.0B-1.3%
Q3'25 - $6.2B -
Q2'25 - $6.8B -
Q1'25 - $5.9B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

IP Stock Snapshot

IP is currently trading at $38.76, giving International Paper Company a market cap of 20.61B. Today's range spans $38.43–$39.06, with shares opening at $38.62 and moving up $0.00 (0.0%) from the prior close. DailyIQ's technical score sits at 68/100 (BUY) with a news sentiment reading of 79/100.

Over the past year IP has traded between $29.26 and $56.13 - the current price is +32.5% off the 52-week low and -30.9% from the high. 22 analysts cover the stock with a Buy consensus and a mean 12-month target of $39.36 (range $32.00–$45.00), implying upside of +1.5%.

IP scores 68/100 (BUY) and is at $38.76 - in the lower half of its 52-week range within its $29.26–$56.13 annual range. Sentiment at 79/100 is bullish. At 20.61B in Consumer Cyclical market cap, this large-cap name benefits from a dynamic that mega-caps don't have: the potential for multiple expansion. When a name at this size with bullish momentum catches the attention of large allocators, the re-rating can be rapid and meaningful.

The combination of a BUY signal (68/100) and bullish news sentiment (79/100) puts IP on the screens of active managers who run quality-momentum overlays — a cohort that can build meaningful positions at 20.61B in Consumer Cyclical market cap without immediately moving the stock. At $38.76 (in the lower half of its 52-week range in the $29.26–$56.13 range), the entry discipline is clean and the potential re-rating if sentiment continues to improve is meaningful.