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International Paper (IP) Q1 Earnings & Sales Top Estimates
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International Paper Company (IP - Free Report) reported first-quarter 2022 adjusted earnings of 76 cents per share, beating the Zacks Consensus Estimate of 52 cents by 46%. The bottom line improved 52% year over year, aided by strong demand and higher sales in its segments, which helped offset the impact of higher input costs.
Including one-time items, the company posted earnings per share from continuing operations of 95 cents in first-quarter 2022 compared with 68 cents in the year-ago quarter.
Net sales were $5.24 billion in the quarter under review, up 14% from the year-ago quarter’s $4.59 billion. The top line beat the Zacks Consensus Estimate of $5 billion.
Cost of sales was $3,839 million in the first quarter, up 15% from the prior-year quarter’s $3,348 million. Gross profit increased 12% year over year to $1,398 million. Selling and administrative expenses were $341 million, which increased 13% year over year. Adjusted operating profit was $288 million, reflecting year-over-year growth of 45% from $198 million in the year-ago quarter.
International Paper Company Price, Consensus and EPS Surprise
Industrial Packaging: The segment’s sales were $4.41 billion compared with the prior-year quarter’s $3.93 billion. Operating profit dipped 5.7% year over year to $397 million.
Global Cellulose Fibers: The segment’s sales climbed 19% year over year to $710 million in the first quarter. The segment reported an operating loss of $49 million in the quarter, compared with the year-ago quarter’s $81 million.
Financial Position
Cash and temporary investments aggregated $1,031 million at the end of first-quarter 2022 compared with $1,295 million as of the end of 2021. In the first quarter, the company repurchased shares worth $406 million. At the end of the March-end quarter, its long-term debt was around $5.5 billion compared with $5.4 billion as of 2021-end. Cash flow from operating activities was $588 billion in the first quarter compared with $512 million in the prior-year quarter.
International Paper expects demand to remain strong in the second quarter. The company expectsprior price movements will likely offset higher costs and boost margins.
Price Performance
International Paper’s shares have fallen 18.5% in the past year, compared with the industry’s loss of 14.1%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
International Paper currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for Mosaic’s current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, missing once. MOS has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 78.9% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for AdvanSix’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 55.8% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 14% over a year.
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International Paper (IP) Q1 Earnings & Sales Top Estimates
International Paper Company (IP - Free Report) reported first-quarter 2022 adjusted earnings of 76 cents per share, beating the Zacks Consensus Estimate of 52 cents by 46%. The bottom line improved 52% year over year, aided by strong demand and higher sales in its segments, which helped offset the impact of higher input costs.
Including one-time items, the company posted earnings per share from continuing operations of 95 cents in first-quarter 2022 compared with 68 cents in the year-ago quarter.
Net sales were $5.24 billion in the quarter under review, up 14% from the year-ago quarter’s $4.59 billion. The top line beat the Zacks Consensus Estimate of $5 billion.
Cost of sales was $3,839 million in the first quarter, up 15% from the prior-year quarter’s $3,348 million. Gross profit increased 12% year over year to $1,398 million. Selling and administrative expenses were $341 million, which increased 13% year over year. Adjusted operating profit was $288 million, reflecting year-over-year growth of 45% from $198 million in the year-ago quarter.
International Paper Company Price, Consensus and EPS Surprise
International Paper Company price-consensus-eps-surprise-chart | International Paper Company Quote
Segment Performance
Industrial Packaging: The segment’s sales were $4.41 billion compared with the prior-year quarter’s $3.93 billion. Operating profit dipped 5.7% year over year to $397 million.
Global Cellulose Fibers: The segment’s sales climbed 19% year over year to $710 million in the first quarter. The segment reported an operating loss of $49 million in the quarter, compared with the year-ago quarter’s $81 million.
Financial Position
Cash and temporary investments aggregated $1,031 million at the end of first-quarter 2022 compared with $1,295 million as of the end of 2021. In the first quarter, the company repurchased shares worth $406 million. At the end of the March-end quarter, its long-term debt was around $5.5 billion compared with $5.4 billion as of 2021-end. Cash flow from operating activities was $588 billion in the first quarter compared with $512 million in the prior-year quarter.
International Paper expects demand to remain strong in the second quarter. The company expectsprior price movements will likely offset higher costs and boost margins.
Price Performance
International Paper’s shares have fallen 18.5% in the past year, compared with the industry’s loss of 14.1%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
International Paper currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for Mosaic’s current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, missing once. MOS has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 78.9% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for AdvanSix’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 55.8% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 14% over a year.