Today's Trend
International Paper Company (NYSE: IP) shares faced pressure as investors weighed a cautious operating outlook against improving longer-term earnings expectations.
- Longer-term earnings estimates increased: Zacks Research raised its FY2027 EPS forecast to $2.81 from $2.75 and its FY2028 estimate to $3.52 from $3.47. It also lifted estimates for Q1 2027, Q3 and Q4 2027, and Q1 2028, suggesting analysts see potential for earnings growth beyond the near term.
- Some insider buying provides a modest supportive signal: Executives Anders Gustafsson and Scott Tozier purchased approximately $1.3 million of IP shares over the past six months, although one executive also sold shares. Insider activity is therefore mixed but net buying may offer some investor confidence.
- Zacks maintained a Hold rating: The firm’s earnings revisions were mixed rather than uniformly bullish. Its current full-year consensus remains $1.34 per share, while estimates for FY2026 were reduced to $1.29 from $1.32. This signals improving longer-term expectations but limited conviction in an immediate recovery.
- Near-term earnings expectations declined: Zacks cut its Q3 2026 EPS forecast to $0.32 from $0.34, reinforcing concerns about subdued profitability in the next reporting period.
- Soft volumes and thin profitability remain concerns: International Paper’s second-quarter sales fell to $6.118 billion from $6.294 billion a year earlier, primarily because of lower sales volumes. Continuing-operations results showed a $0.02 diluted loss per share and adjusted operating earnings of only $0.04 per share, limiting confidence that recent pricing gains can drive substantial near-term earnings growth. International Paper Falls 3.3% as Risk-Off Trading Adds to Post-Earnings Caution
- Risk-off market conditions added selling pressure: Broader weakness linked to geopolitical tensions and higher oil prices particularly weighed on cyclical materials companies such as IP. Mixed institutional activity—with several large investors reducing positions despite buying by BlackRock, AQR and Invesco—also points to uneven sentiment.
Overall, IP’s stock price decreased as investors focused more on weaker volumes, modest current profitability and reduced near-term estimates than on the improved FY2027–FY2028 outlook.