Normalizing Box Demand Weighs on International Paper’s Q4 Results; Shares Fairly Valued

International Paper reported fourth-quarter results that were largely in line with our expectations. Revenue increased 1% year over year in the fourth quarter as declining volume was offset by higher selling prices. Fourth-quarter segment operating margin improved roughly 30 basis points year over year to 8.8%. While International Paper was again impacted by elevated operating costs, fourth-quarter earnings benefited from meaningfully lower input costs.