IP Earnings Prediction
The chart below shows how IP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, IP sees a -1.05% change in stock price 10 days leading up to the earnings, and a +1.40% change 10 days following the report. On the earnings day itself, the stock moves by +1.53%. This data can give you a slight idea of what to expect for the next quarter's release.
IP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.58B
-0.46%
-2.26%
Gross Margin
18.14%
32.51%
-21.06%
Operating Margin
-1.57%
-55.14%
-142.09%
Net Margin
-3.21%
-47.97%
-200.31%
EPS
-0.42
-48.78%
-200.00%
No Data Available
IP Earnings Analysis
International Paper Co Corporation (IP.N) Earnings Conference Call
Positive
Strategic Acquisition Potential: D.S. Smith acquisition expected to close on January 31, 2024, following minimal concerns from the European Commission, indicating strong strategic growth potential for International Paper.
EBITDA Improvement Strategy: Targeting $4 billion in EBITDA with $1.2 billion improvement from cost reductions, demonstrating a clear path to enhanced profitability.
Cost Reduction Strategy: Annual cost reductions of $120 million expected from corporate restructuring and plant closures, contributing to improved operational efficiency.
Facility Investment and Innovation: Investing in a new state-of-the-art corrugated box facility in Waterloo, Iowa, aimed at achieving 20% lower costs and enhancing product quality, indicating a commitment to growth and innovation.
Customer Service Enhancements: Significant improvements in customer service metrics and on-time delivery, reflecting successful implementation of a customer-centric strategy and operational enhancements.
Negative
Profitability Decline Analysis: 4th quarter adjusted operating earnings per share was negative $0.02 as compared to $0.44 in the 3rd quarter, indicating a significant decline in profitability.
Operational Inefficiencies Impact Costs: In 2024, operating performance and lack of productivity cost the company $350,000,000, highlighting operational inefficiencies that need to be addressed.
Earnings Decline from Shutdowns: The company experienced a $222,000,000 decrease in earnings due to accelerated depreciation primarily from the Georgetown Mill closure in the 4th quarter, reflecting the financial impact of facility shutdowns.
Sales Volume Challenges: Volume was unfavorable by $0.08 per share due to two fewer shipping days in North America Box and volume trade-offs related to commercial contract restructuring, indicating challenges in maintaining sales volume.
Increased Costs Impact Performance: Costs were higher due to employee incentive compensation and reliability issues at some mills, which negatively impacted overall financial performance.
IP FAQs
How does IP typically perform around its earnings report dates?
Is International Paper Co (IP) Q4 2024 Earnings Call Summary positive or negative?
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IP Earning Call Sentiment
Earnings call transcript: International Paper Q4 2024 sees mixed results
IP.N
-0.89%Positive
The earnings call reflects mixed signals: strong cost reduction and strategic investments are positive, but negative EPS and significant depreciation expenses weigh heavily. The Q&A reveals concerns about productivity and reliability, offsetting optimism about future returns. The lack of guidance on price increases and vague responses further contribute to a neutral sentiment. The absence of market cap data limits the ability to gauge stock sensitivity, but overall, the mixed financial metrics and strategic plans suggest a neutral stock price movement in the near term.
