International Paper Stock Tumbles On Q4 Earnings Miss, Company Explores Strategic Options For Cellulose Fiber Business
Synopsis
International Papers reported a turnaround in its industrial packaging business, which swung back to profitability. However, the performance of its global cellulose fibers business worsened – its losses nearly doubled.
Shares of International Paper Co. (IP) fell more than 3% in morning trade on Thursday after the company’s fourth-quarter revenue missed analyst estimates.
According to Stocktwits data, International Paper posted $4.58 billion in fourth-quarter revenue, flat year-over-year (YoY), below analyst estimates of $4.74 billion.
However, on the other hand, the company beat analyst expectations on the earnings front – its adjusted loss per share (EPS) for the fourth quarter stood at $0.02, better than the estimated loss of $0.07.
International Papers reported a turnaround in its industrial packaging business, which swung back to profitability with net income of $247 million in the fourth quarter, compared to a loss of $32 million during the same period last year.
However, the performance of its global cellulose fibers business worsened – its losses ballooned to $250 million from $133 million a year ago.
According to the company, high energy costs, mill reliability incidents driving up operating costs, and higher costs of planned outages were among some of the factors impacting this segment’s performance.
"We will continue to optimize and invest in our box plant system to deliver service excellence for our customers while actively exploring strategic options for our Global Cellulose Fibers business,” said International Papers’ Chairman and CEO Andy Silvernail.
The Memphis-based company is set to host its investor day in New York City on Mar. 25.
Retail sentiment on Stocktwits around the International Papers stock was divided, hovering in the ‘neutral’ (50/100) territory.
International Papers’ stock price has gained more than 22% over the past six months, while its one-year returns are even better, with gains of 54%.
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