What To Expect From International Paper's (IP) Q2 Earnings

Packaging and materials company International Paper (NYSE:IP) will be reporting earnings tomorrow morning. Here's what to expect.

International Paper beat analysts' revenue expectations by 2.7% last quarter, reporting revenues of $4.62 billion, down 8% year on year. It was a good quarter for the company, with a solid beat of analysts' Cellulose Fibers revenue estimates.

Is International Paper a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting International Paper's revenue to grow 1.7% year on year to $4.76 billion, a reversal from the 13.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 4 upward revisions over the last 30 days. International Paper has missed Wall Street's revenue estimates five times over the last two years.

Looking at International Paper's peers in the industrials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Crown Holdings's revenues decreased 2.2% year on year, meeting analysts' expectations, and Badger Meter reported revenues up 23.2%, topping estimates by 6.5%. Badger Meter traded up 3.7% following the results.

Read our full analysis of Crown Holdings's results here and Badger Meter's results here.

There has been positive sentiment among investors in the industrials segment, with share prices up 6.5% on average over the last month. International Paper is down 2.2% during the same time and is heading into earnings with an average analyst price target of $47.3 (compared to the current share price of $46.3).

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