International Paper Company: Financial Performance and Analyst Outlook

International Paper Company (IP), based in Memphis, Tennessee, specializes in renewable fiber-based packaging and pulp products. With a market capitalization of $23.4 billion, the company’s offerings include linerboard, medium, whitetop, recycled linerboard, recycled medium, saturating kraft, and pulp. These products are used in various applications, such as diapers, towels, tissue products, feminine care, and other personal care items.

Stock Performance Overview

Over the past year, IP has outperformed the broader market, gaining 20.4% compared to the S&P 500 Index ($SPX), which increased by 8.2%. However, in 2025, IP’s stock has faced a setback, down 17.4%, while the SPX has seen a more modest decline of 4.7% year-to-date (YTD).

Comparison to Market Peers

IP’s performance stands out in contrast to the Materials Select Sector SPDR Fund (XLB), which has declined approximately 7.1% over the last year. Nonetheless, the ETF’s less significant dip on a YTD basis highlights IP’s double-digit losses during the same period.

Market Trends and Company Strategy

The transition to digital media has diminished demand for graphic paper, pushing companies to prioritize packaging and specialty paper. Despite such challenges, the industry’s focus on consumer-driven markets helps maintain stable earnings growth. The rising demand for sustainable packaging and eco-friendly solutions is anticipated to bolster market growth for IP. Additionally, cost-cutting strategies and synergies from acquisitions are set to support robust industry growth, enhancing IP’s performance.

Latest Financial Results

On April 30, IP shares fell over 4% following the announcement of its Q1 results. The company’s adjusted earnings per share (EPS) of $0.23 lagged behind Wall Street’s expectation of $0.35. Revenue also missed forecasts, coming in at $5.9 billion versus the expected $6.6 billion.

Analyst Expectations

For the current fiscal year ending in December, analysts project a substantial EPS growth of 106.2%, predicting a figure of $2.33 on a diluted basis. IP’s earnings surprise history has been mixed; the company surpassed consensus estimates in three of the last four quarters but fell short once.

Analyst Ratings Summary

The consensus opinion among 11 analysts covering IP is a “Moderate Buy,” supported by six “Strong Buy” ratings, one “Moderate Buy,” three “Holds,” and one “Strong Sell.” This rating profile reflects a more bullish outlook than two months prior, when five analysts recommended a “Strong Buy.”

Target Price Insights

On May 5, Mark Weintraub from Seaport Research reaffirmed a “Buy” rating on IP, reducing the price target to $60, suggesting a potential upside of 35% from current levels. The mean price target of $57.43 indicates a 29.2% premium, while the highest projection of $65 implies an ambitious upside potential of 46.2%.

On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is provided solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.