The 5 Most Interesting Analyst Questions From International Paper's Q1 Earnings Call
Is now the time to buy IP? Find out in our full research report (it's free).
Revenue: $5.9 billion vs analyst estimates of $5.99 billion (27.8% year-on-year growth, 1.5% miss)
Adjusted EPS: $0.23 vs analyst expectations of $0.37 (38% miss)
Operating Margin: -0.6%, down from 2.7% in the same quarter last year
Market Capitalization: $24.59 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Phil Ng (Jefferies) asked about the demand assumptions behind full-year EBITDA targets and how order patterns are shaping up. CEO Andy Silvernail said stable demand would support targets but any further weakness would require additional cost actions.
Ng (Jefferies) also questioned potential tariff impacts on the pulp and containerboard businesses. Silvernail explained that direct tariff exposure is limited, with most risk coming from second-order effects on demand and price.
Mike Roxland (Truist Securities) asked for more detail on share gains among local customers and the impact of service improvements. Silvernail credited targeted investments, hiring, and higher service levels for progress, especially with mid-sized accounts.
Mark Weintraub (Seaport Research Partners) inquired about the earnings ramp from first to second half and whether price realization in North America and Europe is fully reflected. Silvernail confirmed that first price hikes are included, while a second round in Europe is not yet certain due to market softness.
George Staphos (Bank of America) probed whether focusing on value over volume could put volume recovery at risk in a weaker environment. Silvernail responded that the current strategy balances margin and volume, with flexibility to accelerate cost actions if needed.
In the coming quarters, the StockStory team will monitor (1) the pace and effectiveness of DS Smith integration and synergy capture, (2) progress in cost-out initiatives and mill optimization, and (3) realization of price increases in both North America and Europe. Additional attention will be paid to signs of demand stabilization or further volatility, as well as ongoing strategic options for the Global Cellulose Fiber business.
International Paper currently trades at $46.59, down from $47.61 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free).
The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Error al recuperar los datos
Inicia sesión para acceder a tu cartera de valores
Error al recuperar los datos
Error al recuperar los datos
Error al recuperar los datos
Error al recuperar los datos
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 hours ago
- Yahoo
Hasbro's Magic: The Gathering growth helps offset toy revenue drop
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Dive Brief: As it undergoes a turnaround effort, Hasbro's second quarter revenue dropped 1% year over year to $980.8 million, according to a company press release Wednesday. The company's 16% growth in its Wizards and digital gaming segment (which includes Magic: The Gathering) helped to nearly offset a 16% revenue drop in its consumer products category, which saw softness in toys due to 'order timing and geographic volatility,' per the release. Hasbro reported a net loss of about $854.7 million for the quarter compared to a net income of $138.5 million the year before. The company also recorded a $798 million operating loss inclusive of a $1 billion noncash goodwill impairment charge. The toy company raised its full-year guidance, now anticipating a revenue increase in the mid-single digits on a constant currency basis (compared to previous predictions that it would be 'up slightly') and an adjusted operating margin of 22% to 23% (compared to the previous 21% to 22% prediction). Dive Insight: Hasbro's Magic: The Gathering performance helped fuel the company's Q2 performance despite a tough environment for toys. 'Hasbro's return to growth in the first half of 2025 is clear validation that our Playing to Win strategy is working,' Chief Executive Officer Chris Cocks said in a statement. 'We delivered record-setting results from Magic: The Gathering, alongside strong contributions from our games portfolio, licensing partnerships, and digital initiatives.' Magic: The Gathering experienced 23% growth driven by a tabletop card game release for Final Fantasy, which debuted in June. Cocks told analysts on a Wednesday call that Hasbro had to increase production runs four times since its launch and the company even 'left demand on the table.' The executive also said that 2025 is the year Hasbro will return to growth. Tariffs remained a discussion point on the call for Hasbro, which in April had not changed its full-year guidance due to the volatile trade environment. Hasbro's inventory is up 17% year over year, according to a Q2 results presentation from the company, with production and shipments having restarted from China in May. Since then, potential tariffs on imports from China have dropped to an additional 30%, which is more 'favorable' for Hasbro though such rates remain fluid, CFO and COO Gina Goetter told analysts on the call. 'Based on our conversations with investors, expectations were high heading into the Q2 print, but [Hasbro] reported strong Q2 results,' analysts led by Jefferies said in a note shared with Retail Dive. The improved company outlook is on the back of a turnaround plan announced in February, which includes a focus on creating mid-single-digit revenue growth between 2025 and 2027, as well as adding $1 billion in gross cost savings. Sign in to access your portfolio
Yahoo
16 hours ago
- Yahoo
Sydney Sweeney Just Launched a Meme Rally in American Eagle. Should You Buy AEO Stock Here?
American Eagle (AEO) shares soared as much as 20% on Thursday after the clothing retailer said actress Sydney Sweeney will be the face of its fall campaign. Retail investors latched onto the Sweeney news, partly because short interest in the NYSE-listed firm stood at a whopping 13.5% heading into today, making it a prime candidate for short squeeze. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Is Opendoor Stock a Buy at New 52-Week Highs? Can Lucid Motors Stock Hit $7 in 2025? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! While American Eagle stock has relinquished some of its intraday gains in recent hours, at market open, it was up nearly 30% versus its year-to-date low set in mid-June. Caution Warranted in Buying American Eagle Stock Disciplined investors should approach today's rally in AEO shares with caution as it was driven mostly driven by celebrity buzz and meme stock phenomenon instead of fundamentals. American Eagle did not issue a financial or operational update to justify such a sharp surge in its stock price, neither did it receive bullish coverage from a Wall Street analyst on Thursday. Therefore, once the hype fades, American Eagle stock could retrace just as quickly, particularly since its struggling with an earnings contraction. In its current financial quarter, the Pittsburgh-headquartered firm is expected to earn just $0.20 on a per-share basis, down significantly from $0.39 a share in the same quarter last year. Jefferies Analyst Remains Dovish on AEO Shares Chasing the meme-driven momentum in American Eagle shares may be a gamble also because 'ongoing headwinds facing the consumer could impact the company's top-line growth and margin performance over the next 6-12 months,' according to Jefferies analyst Corey Tarlowe. In his latest research note, he cited execution challenges and product assortment issues as well for his dovish stance on AEO stock. Jefferies currently has a 'Hold' rating on American Eagle Outfitters with an $11 price target indicating potential downside of more than 3.0% from current levels. How Wall Street Recommends Playing American Eagle Long-term investors should avoid jumping into AEO shares amid the meme stock frenzy as they're not in favor with other Wall Street analysts either. According to Barchart, the consensus rating on American Eagle stock currently sits at 'Hold' only and the mean target of $11.27 is roughly in line with its current trading price. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 hours ago
- Yahoo
Galaxy Positioned to Capture Favorable Regulatory Upside, Jefferies Says as It Initiates With Buy
Galaxy Digital (GLXY) is well positioned to capture upside from the favorable regulatory backdrop for cryptocurrency, Jefferies said in a new research report. Jefferies has initiated coverage of the crypto investment bank with a buy rating, citing the passage of the GENIUS Act in the U.S. as "providing favorable market structure," for Galaxy's business. The research on Tuesday also highlighted Galaxy's potential for profiting from the growing demand for artificial intelligence (AI) data centers. Jefferies referred to Galaxy's lease of CoreWeave's 393 MW site at Helios, West Texas as "a transformational deal." Jefferies assigned Galaxy a buy rating and a $35 price target. GLXY shares closed over 6% higher at $29.11 on Tuesday. They were up a further 3% at $30 in pre-market trading on Wednesday. The Mike Novogratz-founded firm is a digital assets financial services firm providing trading, asset management and investment banking. However, Jefferies believes approximately two thirds of its value stems from its data center business. The bitcoin (BTC) mining industry has been pivoting to AI data to cash in on the proliferation of the sector and to diversify their revenue streams amidst more challenging conditions for BTC mining. AI data centers and bitcoin mining facilities have numerous similarities in terms of the required hardware and expertise in high-performance computing (HPC), thus it can prove a natural expansion for miners.
