Advertisement
UK markets close in 2 hours 46 minutes

  • FTSE 100

    8,088.28
    +43.47 (+0.54%)
     

  • FTSE 250

    19,804.77
    +5.05 (+0.03%)
     

  • AIM

    755.36
    +0.49 (+0.06%)
     

  • GBP/EUR

    1.1640
    +0.0012 (+0.10%)
     

  • GBP/USD

    1.2436
    -0.0016 (-0.13%)
     

  • Bitcoin GBP

    53,532.24
    +479.73 (+0.90%)
     

  • CMC Crypto 200

    1,438.59
    +14.49 (+1.02%)
     

  • S&P 500

    5,070.55
    +59.95 (+1.20%)
     

  • DOW

    38,503.69
    +263.71 (+0.69%)
     

  • CRUDE OIL

    82.86
    -0.50 (-0.60%)
     

  • GOLD FUTURES

    2,328.60
    -13.50 (-0.58%)
     

  • NIKKEI 225

    38,460.08
    +907.92 (+2.42%)
     

  • HANG SENG

    17,201.27
    +372.34 (+2.21%)
     

  • DAX

    18,174.96
    +37.31 (+0.21%)
     

  • CAC 40

    8,142.61
    +36.83 (+0.45%)
     
Money:

The five essential pieces of financial paperwork you must never lose

Mislaying key documents can cause real headaches, so it’s worth tracking down these most commonly-lost bits of paperwork

International Paper (IP) Q3 Earnings Top, Sales Lag Estimates

Zacks Equity Research

International Paper Company IP reported third-quarter 2019 adjusted earnings of $1.09 per share, down 30% year over year. However, the bottom-line figure outpaced the Zacks Consensus Estimate of $1.00.

Including one-time items, earnings during the July-September quarter came in at 87 cents compared with the year-ago quarter’s $1.37.

Net sales declined to $5,568 million in the reported quarter from $5,901 million in the year-ago quarter. Further, the reported figure missed the Zacks Consensus Estimate of $5,730 million.

International Paper Company Price, Consensus and EPS Surprise

International Paper Company Price, Consensus and EPS Surprise
International Paper Company Price, Consensus and EPS Surprise

International Paper Company price-consensus-eps-surprise-chart | International Paper Company Quote

ADVERTISEMENT

Cost of sales was $3,772 million, down from the $3,887 million recorded in the prior-year quarter. Gross profit declined 11% year over year to $1,796 million. Selling and administrative expenses went down 4% year over year to $387 million in the quarter. Adjusted operating earnings came in at $431 million, reflecting a year-over-year decline of 33%.

Segment Performance

Industrial Packaging: Sales in this segment slipped to $3,820 million in the reported quarter from $4,034 million in the year-earlier period. Adjusted operating profit declined 10.5% year over year to $535 million.

Printing Papers: This segment’s sales were $1,071 million in the third quarter, down 2.8% from $1,102 million in the year-earlier quarter. Adjusted operating profit for the segment was $162 million compared with $188 million in the year-ago period.

Global Cellulose Fibers: Sales of this segment came in at $624 million compared with $714 million in the prior-year quarter. The segment reported adjusted operating profit of $4 million in third-quarter 2019 compared with $85 million in the year-ago period.

Balance Sheet

Cash and temporary investments aggregated $697 million at the end of the third quarter of 2019 compared with $589 million at the end of the 2018. As of the third quarter’s end, long-term debt was $9.96 billion compared with $10.02 billion as of Dec 31, 2018.

Cash flow from operating activities was $2.7 billion in the nine-month period ended Sep 30, 2019 compared with $2.4 billion generated in the prior-year comparable period. Free cash flow was $1,769 million during the nine-month period ended Sep 30, 2019 compared with $1,119 million in the comparable period last year.

International Paper repurchased shares worth $74 million during the third quarter, bringing the trailing 12-month total to $685 million. The company has paid dividend worth $595 million so far this year.

Price Performance


International Paper’s shares have lost 5.9% over the past year compared with the industry’s decline of 50.6%.

Zacks Rank & Key Picks

International Paper currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines Limited AEM, Franco-Nevada Corporation FNV and Kirkland Lake Gold Ltd. KL, all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle Mines has an expected earnings growth rate of 168.57% for 2019. The company’s shares have gained 69% in the past year.

Franco-Nevada Corporation has a projected earnings growth rate of 39.32% for the current year. The company’s shares have rallied 52% in a year’s time.

Kirkland Lake Gold has an estimated earnings growth rate of 93.38% for the ongoing year. Its shares have appreciated 131% in the past year.

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

Download Free Report Now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
 
Franco-Nevada Corporation (FNV) : Free Stock Analysis Report
 
International Paper Company (IP) : Free Stock Analysis Report
 
Kirkland Lake Gold Ltd. (KL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research