Paper and packaging company, International Paper Company (IP) reported a drop in Q4 profits, but beat analysts estimates on Tuesday.
The Memphis, TN based company reported fourth quarter earnings of $235 million, or 53 cents per share, down from $281 million, or 65 cents per share last year. Excluding special items, the company reported earnings of 69 cents per share, down from 73 cents per share last year, yet beating analysts estimate of 65 cents per share.
The company’s revenue increased 10% to $7.08 billion from $6.37 billion last year. Analysts expected revenue of $7.02 billion.
IP’s CEO John Faraci commented, “our success capturing merger benefits from the Temple-Inland acquisition contributed to our fourth quarter results and IP’s record cash generation from operations in 2012. Given our runway levers and ability to execute, we are positioned to deliver a step-change in earnings as we move through 2013.”
International Paper shares were mostly flat during premarket trading Tuesday. The stock has increased 36% in the past year.
The Bottom Line
Shares of International Paper Company(IP) have a 2.85% dividend yield, based on Friday’s closing stock price of $42.12
International Paper Company(IP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.