International Paper Co

IP: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$96.00	Yld	Jrkdmqqj

International Paper Earnings: Volume Gains Are Offset by Lower Selling Prices; Shares Remain Cheap

Spencer Liberman

Feb 1, 2024

No-moat-rated International Paper reported lackluster fourth-quarter results that came with few surprises. Net sales in the fourth quarter fell over 10% year over year as both segments saw declines amid lower pricing across much of the business. Management noted that inventory destocking headwinds that weighed on volumes for much of 2023 have largely abated, and the industrial packaging segment experienced volume growth in the fourth quarter. Despite pricing headwinds, we are encouraged by improvements in destocking trends, which could provide a runway for volume growth in 2024. As such, we maintain our $41 per share fair value estimate.

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