NYSE$IP

International Paper Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

International Paper delivered solid earnings and strong cash generation.

International Paper reported solid earnings and strong cash generation in the first quarter of 2021. The company's operations performed well, mitigating the impact of the winter storm and supporting strong customer demand in the packaging business. Momentum is expected to continue building across all three businesses, with continued strong demand for corrugated packaging and absorbent pulp, and a more favorable supply/demand backdrop for printing papers.

  • First quarter net earnings attributable to International Paper was $349 million ($0.88 per diluted share).
  • First quarter adjusted operating earnings (non-GAAP) was $299 million ($0.76 per diluted share).
  • First quarter cash provided by operations was $512 million.
  • Returned $331 million to shareholders through dividends of $202 million and share repurchases of $129 million.

Headline financials

Total Revenue

$5.36B

Previous: $5.24B+2.4%
EPS (adj)

$0.76

Previous: $0.57+33.3%
Free Cash Flow

$423M

Previous: $363M+16.5%
Net Income

$349M

Previous: -$141M+347.5%
Operating Income

$445M

Previous: $512M-13.1%
Gross Profit

$1.52B

Previous: $1.49B+1.8%
Cash & Equivalents

$491M

Previous: $1.24B-60.4%
Total Assets

$31.5B

Previous: $33.2B-5.2%

Revenue & EPS history

International Paper · Revenue · Quarterly

$5.36B

Q1 2021+2.4%vs Q1 2020
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

International Paper · $48M total across 1 segment · Q1 2021

  • Corporate and Inter-segment Sales
    $48M-15.8%

Forward guidance

International Paper anticipates continued strong demand for corrugated packaging and absorbent pulp. They are also observing a more favorable supply/demand dynamic for printing papers, contributing to a more optimistic outlook for 2021.

Tailwinds

  • Continued strong demand for corrugated packaging
  • Continued strong demand for absorbent pulp
  • Much better supply/demand backdrop for printing papers
  • Favorable outlook in 2021
  • Operationally, performed well to mitigate the significant impact of the winter storm

Headwinds

  • Still in the midst of a global pandemic
  • Health and safety of employees remains most important responsibility
  • Winter storm in the U.S. had a pre-tax earnings impact of $(80) million ($(0.15) per diluted share)
  • Higher planned maintenance outage expenses in North America
  • Higher input costs for wood and energy in North America

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.2%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+1.0%

Avg return

30 days after

44%

31 / 70 earnings

Positive

+13.7%

Q3 2024

Best reaction

-12.3%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%-5.1%-0.4%
Q4 2025-5.1%+1.4%+5.0%
Q3 2025-12.3%-17.3%-10.7%
Q1 2025-4.1%-7.1%+0.4%
Q4 2024-1.6%-7.1%-2.8%
Q3 2024+13.7%+17.4%+20.0%
Q2 2024+0.7%+1.6%+6.5%
Q1 2024-1.7%+1.5%+32.0%
Q4 2023-6.6%-7.5%-2.2%
Q3 2023+0.1%+1.8%-0.6%
Q2 2023+5.8%+6.4%+0.5%
Q1 2023-4.2%-6.5%-11.4%
Q4 2022+8.1%+9.4%-0.7%
Q3 2022+1.8%+0.9%+10.5%
Q2 2022+0.4%-0.7%+0.0%
Q1 2022-2.3%-1.1%+4.1%
Q4 2021-0.3%+1.6%-4.0%
Q3 2021-6.3%-7.4%-10.4%
Q2 2021-1.3%+0.4%+2.8%
Q1 2021+0.6%+4.7%+9.4%
Q4 2020-7.1%-5.0%+7.0%
Q3 2020+1.7%+8.2%+17.9%
Q2 2020-5.3%-4.0%+0.5%
Q1 2020-7.1%-9.4%-6.8%
Q4 2019-6.1%-3.7%-14.8%
Q3 2019+3.1%+6.1%+8.7%
Q2 2019+2.7%+2.1%-15.2%
Q1 2019+3.8%+5.7%-3.4%
Q4 2018-2.1%-1.1%-2.3%
Q3 2018+13.0%+14.3%+13.2%
Q2 2018-1.9%+1.3%-2.3%
Q1 2018-1.7%-4.4%+1.2%
Q4 2017-1.1%-5.2%-7.0%
Q3 2017-1.1%-2.5%-6.4%
Q2 2017-2.9%-1.9%-3.2%
Q1 2017-0.2%-0.7%-3.1%
Q4 2016-6.2%-7.7%-4.4%
Q3 2016-2.5%-4.2%+5.8%
Q2 2016+0.5%-0.4%+7.2%
Q1 2016+0.5%
Q4 2015+3.6%
Q3 2015-0.1%
Q2 2015-2.6%
Q1 2015+0.5%
Q4 2014-0.5%
Q3 2014+3.5%
Q2 2014-3.5%
Q1 2014+0.3%
Q4 2013+1.7%
Q3 2013+2.7%
Q2 2013+4.0%
Q1 2013-0.6%
Q4 2012-0.8%
Q3 2012-2.0%
Q2 2012+6.4%
Q1 2012-1.3%
Q4 2011+5.2%
Q3 2011+1.9%
Q2 2011+4.1%
Q1 2011+2.3%
Q4 2010+0.9%
Q3 2010+1.2%
Q2 2010-3.8%
Q1 2009+6.2%
Q1 2010-0.1%
Q4 2007-3.0%
Q2 2009-3.0%
Q4 2009-3.0%
Q3 2009+4.8%
Q4 2008-4.1%

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