Anticipated Highlights in International Paper's Upcoming Quarterly Financial Report
International Paper Company (IP), a global producer of renewable fiber-based packaging and pulp products, is set to release its fiscal Q2 2025 results on Thursday, Jul. 31. Despite expectations of a near-term earnings decline, analysts maintain a cautiously optimistic view on the company's stock, with a "Moderate Buy" rating overall.
Analysts project IP to report an adjusted EPS of $0.38 for fiscal Q2 2025, marking a 30.9% decrease from $0.55 in the year-ago quarter. This indicates expectations of a short-term earnings decline, but the outlook beyond Q2 2025 is more optimistic. For fiscal 2025, analysts forecast IP to report an adjusted EPS of $2.01, up 77.9% from $1.13 in fiscal 2024. Furthermore, analysts expect adjusted EPS to rise further to $3.50 in fiscal 2026, representing a 74.1% year-over-year increase.
The company, which operates through its Industrial Packaging and Global Cellulose Fibers segments, has a market cap of $26.6 billion. Over the past 52 weeks, shares of IP have risen 15.8%, outperforming the broader S&P 500 Index's 13.4% gain and the Materials Select Sector SPDR Fund's 4.1% return over the same time frame. However, shares of International Paper fell 4.1% on Apr. 30. As of writing, IP is trading below the average analyst price target of $56.28.
Seven analysts suggest a "Strong Buy," one gives a "Moderate Buy," two recommend a "Hold," and two give "Strong Sells." The company reported Q1 2025 adjusted EPS of $0.23 and revenue of $5.9 billion.
Weaker-than-expected demand for corrugated cardboard and fiber packaging in North America and Europe contributed to the disappointing results. Inflationary pressures and concerns about a recession also played a role.
It is important to note that all information and data in this article are for informational purposes only. Sohini Mondal did not have positions in any of the securities mentioned in the article.
In summary, the outlook shows a short-term EPS decline in Q2 2025 but a strong growth trajectory for the full fiscal year 2025 and into 2026, reflecting positive longer-term expectations from analysts despite near-term challenges. Investors are advised to closely monitor the company's Q2 2025 earnings report, scheduled for release on July 31, 2025, before the market opens.
Investors are advised to closely monitor the International Paper Company's (IP) fiscal Q2 2025 earnings report on July 31, 2025, as this will provide insights into the company's financial performance, particularly focusing on the expected short-term earnings decline but long-term growth prospects. The outlook suggests that while there might be a dip in Q2 2025, the company's adjusted EPS is projected to rise significantly for the full fiscal year 2025 and into 2026.
