International Paper Set to Report Q2 Earnings: What's in Store?

International Paper Company IP is scheduled to report second-quarter 2025 results on July 31, before the opening bell.The Zacks Consensus Estimate for IP’s second-quarter revenues is pegged at $6.8 billion, indicating 43% growth from the year-ago reported figure.The Zacks Consensus Estimate for International Paper’s earnings has moved down 2.6% in the past 60 days to 38 cents per share. The estimate indicates a 30% year-over-year decrease.  Image Source: Zacks Investment Research 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 39.5%. Image Source: Zacks Investment Research What the Zacks Model Unveils for International PaperOur model predicts an earnings beat for IP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is precisely the case here, as you can see below. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Earnings ESP: International Paper has an Earnings ESP of +1.31% at present.Zacks Rank: The company currently has a Zacks Rank of 3Factors Likely to Have Shaped IP’s Q1 PerformanceOn Jan. 31, 2025, International Paper completed the previously announced acquisition of DS Smith, forming a global leader in sustainable packaging solutions with a focus on the North America and EMEA markets. As a result, the company will now operate its financial results in three segments — Packaging Solutions North America, Packaging Solutions EMEA and Global Cellulose Fibers. The company started posting combined company reports from the first quarter of 2025. Reflecting the impacts of the DS Smith acquisition, we expect the Packaging Solutions EMEA segment’s net sales to be $2.23 billion in the second quarter, indicating a significant increase from the $0.33 billion posted in the year-ago quarter. The segment’s operating profit is expected to be $72.9 million, per our model. The Packaging Solutions EMEA segment posted an operating profit of $10 million in the second quarter of 2024. However, weaker-than-expected volumes due to lower industrial production and decreased prices are expected to get reflected in the upcoming results.We expect Packaging Solutions North America’s net sales to increase 10.4% year over year to $4.01 billion, driven by the addition of the DS Smith North America business. The operating profit is expected to increase 9.8% year over year to $309 million in the quarter. We expect the Global Cellulose Fibers segment’s net sales to dip 9.1% year over year to $652 million. The segment is expected to report an operating loss of $4.1 million against the year-ago reported operating income of $31 million.International Paper has been witnessing weak packaging demand as inflationary pressures have impacted consumers, and their priorities have shifted toward non-discretionary goods and services. The company’s customers and the broader retail channel have been trying to lower their elevated inventories, impacting the packaging demand.However, these are likely to have been offset by stable demand in the e-commerce channel and the company’s strategic initiatives.International Paper Stock's Price PerformanceIP shares have gained 23.7% in the past year compared with the industry's 30.6% growth. Image Source: Zacks Investment Research Stocks to ConsiderHere are some Basic Materials stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases.Pan American Silver Corp. PAAS, slated to release second-quarter 2025 earnings on August 6, has an Earnings ESP of +3.09% and flaunts a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus mark for Pan American Silver’s revenues is $766.8 million, indicating year-over-year growth of 11.7%. The Zacks Consensus Estimate for PAAS’ earnings for the second quarter is pegged at 39 cents per share. The estimate indicates a significant climb from the earnings of 11 cents per share reported in the year-ago quarter. PAAS has a trailing four-quarter average earnings surprise of 36.7%.Agnico Eagle Mines Limited AEM, scheduled to release second-quarter earnings on July 30, has an Earnings ESP of +7.97% and a Zacks Rank of 3. The Zacks Consensus Estimate for Agnico Eagle Mines’ revenues is $2.55 billion, implying year-over-year growth of 22.9%. AEM’s earnings for the second quarter are pegged at $1.69 per share, indicating a year-over-year jump of 57.9%. Agnico Eagle Mines has a trailing four-quarter average earnings surprise of 12.3%.CSW Industrials, Inc. CSW, slated to release first-quarter fiscal 2026 earnings on July 31, has an Earnings ESP of +4.38% and a Zacks Rank of 3 at present.The consensus mark for CSW Industrials’ first-quarter revenues is $277 billion, implying year-over-year growth of 22.5%.The consensus mark for earnings is pegged at $2.74 per share. It indicates a year-over-year rise of 10.9%.CSW Group has a trailing four-quarter average earnings surprise of 7.8%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Pan American Silver Corp. (PAAS): Free Stock Analysis Report CSW Industrials, Inc. (CSW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks