International Paper Earnings: Here’s Why Shares are Up Now

International Paper Co. (NYSE:IP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4.42%.

International Paper Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 23.91% to $0.57 in the quarter versus EPS of $0.46 in the year-earlier quarter.

Revenue: Rose 3.65% to $7.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: International Paper Co. reported adjusted EPS income of $0.57 per share. By that measure, the company beat the mean analyst estimate of $0.56. It missed the average revenue estimate of $7.42 billion.

Quoting Management: “International Paper delivered strong results this quarter. We expanded margins and benefited from seasonally stronger volumes and solid operating performance despite higher planned maintenance outage costs” said John Faraci, Chairman and Chief Executive Officer. “As we move into the second half of the year, the company is well positioned to significantly improve earnings and free cash flow for the balance of 2013.”

Key Stats (on next page)…

Revenue increased 3.46% from $7.09 billion in the previous quarter. EPS decreased 12.31% from $0.65 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.23 to a profit $1.15. For the current year, the average estimate has moved down from a profit of $3.99 to a profit of $3.5 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)