Valued at $20.4 billion by market cap, International Paper Company (IP) is a global sustainable packaging company headquartered in Memphis, Tennessee, that manufactures fiber-based packaging products made from renewable resources. Its offerings include corrugated packaging, containerboard, and protective packaging solutions used to transport, protect, and promote products across industries.
The company is scheduled to release its Q3 2026 earnings on Wednesday, Oct. 28, before the market opens. Ahead of the event, analysts expect the company’s EPS to be $0.30 on a diluted basis, up 169.8% from the loss of $0.43 per share year-ago quarter. However, the road to an earnings beat has been challenging, as International Paper has fallen short of analysts’ EPS estimates in three of its past four quarters. while beating on only one occasion.
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Looking further ahead, analysts expect the recovery to gather pace, with fiscal 2026 EPS projected to reach $1.28, up 740% from a loss per share of $0.20 in fiscal 2025. Moreover, its EPS is expected to rise by roughly 135.9% year over year to $3.02 in fiscal 2027.
www.barchart.comIP stock has declined 30.3% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 17.3% rise and the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 3.9% dip during the same time frame.
www.barchart.comInternational Paper has lagged the broader market over the past year amid sluggish revenue growth, declining earnings, and weakening returns on invested capital. Despite its extensive scale in the packaging and paper industry, the company has recorded average annual revenue growth of just 2.5% over the past five years, limiting its ability to keep pace with faster-growing competitors.
More concerningly, EPS have declined by an average of 16% annually over the same period, even as revenue increased, indicating mounting pressure on profitability. Meanwhile, diminishing returns on capital suggest that the company’s investments have struggled to generate sufficient returns, raising concerns about its operational efficiency and long-term growth prospects.
On the bright side, on Oct. 12, International Paper declared a quarterly dividend of $0.4625 per share on its common stock for the fourth quarter of 2026, payable on Dec. 15 to shareholders of record as of Nov. 16. The company also announced a quarterly dividend of $1.00 per share on its cumulative $4.00 preferred stock, payable on the same date to shareholders of record as of Nov. 16.
Analysts are very bullish on IP, with the stock having a “Strong Buy” rating overall. Among the 13 analysts covering the stock, ten are recommending a “Strong Buy,” one recommends a “Moderate Buy,” and two suggest a “Hold” for the stock. IP’s average analyst price target is $45.52, indicating an upside of 43.1% from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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