International Paper Co. Earnings Cheat Sheet: Earnings Higher Than Expected

S&P 500 (NYSE:SPY) component International Paper Co. (NYSE:IP) reported net income above Wall Street’s expectations for the second quarter. International Paper Co. is a global paper and packaging company with operations in North America, Europe, Latin America, Russia, Asia and North Africa.

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International Paper Earnings Cheat Sheet for the Second Quarter

Results: Net income for the paper company rose to $224 million (52 cents per share) vs. $93 million (21 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 8.6% to $6.65 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: IP reported adjusted net income of 80 cents per share. By that measure, the company beat the mean estimate of 66 cents per share. Analysts were expecting revenue of $6.63 billion.

Quoting Management: “In what remains a slow and extended economic recovery, International Paper continues to demonstrate solid performance and strong free cash flow,” said John Faraci, Chairman and Chief Executive Officer. “We are the only paper and packaging company in the world with a truly global footprint, and it’s this balanced global portfolio, along with favorable cost management and a sharp focus on operations that have driven our results the last four quarters.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 15 cents in the first quarter, by 3 cents in the fourth quarter of the last fiscal year, and by 13 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 10% to $6.39 billion in the first quarter. The figure rose 9.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 13.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company’s cost of sales rose 8.7% from a year earlier. Last quarter, cost of sales was 73.4% of revenue, similar to a year earlier.

Competitors to Watch: Clearwater Paper Corp (NYSE:CLW), P.H. Glatfelter Company (NYSE:GLT), Wausau Paper Corp. (NYSE:WPP), MeadWestvaco Corp. (NYSE:MWV), KapStone Paper and Packaging Corp. (NYSE:KS), Boise Inc. (NYSE:BZ), Buckeye Technologies Inc. (NYSE:BKI), Fibria Celulose S.A. (NYSE:FBR), and Domtar Corp. (NYSE:UFS).

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(Source: Xignite Financials)

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