International Paper Set to Report Q3 Earnings: What's in Store?

International Paper Company IP is scheduled to report third-quarter 2024 results on Oct. 31, before the opening bell.The Zacks Consensus Estimate for IP’s third-quarter revenues is pegged at $4.67 billion, indicating 1.2% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at 24 cents per share. The Zacks Consensus Estimate for IP’s third-quarter earnings has remained constant in the past 60 days. The estimate indicates a year-over-year decline of 62.5%.Image Source: Zacks Investment ResearchFind the latest EPS estimates and surprises on Zacks Earnings Calendar.IP’s Earnings Surprise HistoryInternational Paper’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.1%.Image Source: Zacks Investment ResearchWhat the Zacks Model Unveils for International PaperOur model predicts an earnings beat for International Paper this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.You can uncover the best stocks before they are reported with our Earnings ESP Filter.Earnings ESP: International Paper has an Earnings ESP of +6.25% at present.Zacks Rank: The company currently sports a Zacks Rank of 2.Factors Likely to Have Shaped IP’s Q3 PerformanceInternational Paper noted a pickup in demand this year after softness through the major part of 2023 due to inventory destocking at customers’ end. The company has been seeing stable demand in the e-commerce channel as packaging plays a critical role in the supply chain to bring essential products to consumers. This is likely to be reflected in the company’s third-quarter results.The Industrial Packaging segment is likely to have witnessed a year-over-year improvement in volume in Saturated Kraft (9%), Gypsum /Release Kraft (1.2%) and a slight improvement in EMEA Packaging (0.2%), which is likely to have been offset by the decline in corrugating packaging volumes (5.1%).Overall, volumes for the Industrial Packaging segment are projected to be 3,926 thousand short tons in the third quarter of 2024, which indicates a 0.5% year-over-year dip. Our estimate for containerboard volumes is 777 thousand short tons, which indicates year-over-year growth of 14.8%.We expect average realized pricing for the Industrial Packaging segment to be 1% higher year over year. Our anticipation for Industrial Packaging’s revenues is 0.8% improvement to $3.82 billion on higher prices. The segment’s margin is likely to have been hurt by higher input costs (particularly old corrugated container costs), and operating and distribution costs. Our model projects the segment’s quarterly operating profit to plunge 59.7% to $131 million.We expect the Global Cellulose Fibers segment’s volumes to be 679 thousand metric tons, indicating a 1.8% year-over-year dip. Pricing is expected to have risen 0.4% year over year.The segment’s third-quarter revenues, per our model, are estimated to be $714 million, implying a dip of 1.4% from the year-ago quarter’s reported level. The estimate for the segment’s operating profit is $31.4 million, which indicates 16.3% increase from the prior-year actual.International Paper’s Share Price PerformanceShares of International Paper have gained 52.5% in the past year compared with the industry's 50.6% growth.Image Source: Zacks Investment ResearchOther Stocks to ConsiderHere are some other companies in the basic materials space, which, according to our model, also have the right combination of elements to post an earnings beat this season:Agnico Eagle Mines Limited AEM, scheduled to release its third-quarter 2024 earnings on Oct. 30, has an Earnings ESP of +5.82% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for AEM’s third-quarter earnings is currently pegged at 96 cents per share. It has a trailing four-quarter average surprise of 13.7%.Kinross Gold Corporation KGC, scheduled to release its third-quarter 2024 on Nov. 5, has an Earnings ESP of +12.29% and a Zacks Rank of 1 at present.The Zacks Consensus Estimate for KGC’s third-quarter 2024 earnings is pegged at 16 cents per share, indicating year-over-year growth of 33.3%. It has a trailing four-quarter average surprise of 29.1%.Royal Gold, Inc. RGLD, ready to release earnings on Nov. 6, has an Earnings ESP of +1.13% and a Zacks Rank #2 at present.The Zacks Consensus Estimate for RGLD’s third-quarter 2024 earnings is currently pegged at $1.25 per share. It has a trailing four-quarter average surprise of 6.4%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Paper Company (IP): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Royal Gold, Inc. (RGLD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks