International Paper Co (NYSE:IP) Misses Earnings Estimates, Shares Drop in Premarket
International Paper Co (IP) reported mixed second-quarter 2025 results, with revenue exceeding expectations but earnings falling short of analyst estimates. The market reacted negatively, with shares down over 7% in premarket trading.
Key Earnings Highlights
- Revenue: $6.77 billion, up 42.9% year-over-year, slightly below the consensus estimate of $6.91 billion.
- Earnings Per Share (EPS): Adjusted EPS came in at $0.20, missing analyst expectations of $0.42 by 51.1%.
- Net Earnings: Reported net earnings of $75 million ($0.14 per diluted share), while adjusted operating earnings stood at $105 million ($0.20 per diluted share).
Market Reaction
The sharp decline in premarket trading suggests investor disappointment, primarily driven by the significant earnings miss. Despite strong revenue growth, the weaker-than-expected profitability appears to have overshadowed the top-line performance. Over the past month, IP shares had gained 8.5%, but today’s drop erases much of that momentum.
Analyst Estimates vs. Outlook
Looking ahead, analysts expect:
- Q3 2025 Revenue: $7.02 billion
- Q3 2025 EPS: $0.70
- Full-Year 2025 Revenue: $27.01 billion
- Full-Year 2025 EPS: $2.24
The press release did not provide forward-looking guidance, leaving investors to rely on analyst projections. The lack of an official outlook neither reinforces nor mitigates concerns about future performance.
Press Release Summary
The company highlighted:
- Strong sales growth driven by its Industrial Packaging and Global Cellulose Fibers segments.
- Continued focus on sustainable fiber-based packaging and pulp products.
- Ongoing cost management efforts, though profitability was pressured.
For a deeper dive into International Paper’s earnings and future estimates, visit the earnings estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
