International Paper finds itself grappling with a severe financial crisis. Investors were taken aback by a quarterly loss amounting to billions and a significant downward revision of profit forecasts. As CEO Andy Silvernail addresses the Baird Conference today, the market is questioning whether the stock has found its floor or if the decline will persist.
A Concerning Trend in the Charts
While the stock is currently trading at $37.81, marking a 4.27 percent gain over the last 24 hours, this short-term uptick fails to conceal a more troubling pattern. Over the past month, the share value has plummeted by 16.98 percent. The year-to-date performance is even more stark, showing a loss of 28.65 percent. The equity recently touched a 52-week low of $35.85 and continues to trade well below its key moving averages, signaling sustained negative momentum.
A Quarterly Setback: $1.1 Billion Loss
The company reported a substantial net loss of $1.1 billion for the third quarter. This figure presents a sharp contrast to the profitable position it held in the same period last year. Despite a rise in revenue to $6.22 billion, the company’s performance fell far short of market expectations.
The loss per share was $(0.43), a result that deeply disappointed analysts who had projected a profit of $0.53 per share. The multi-billion dollar loss underscores significant operational headwinds that even increased sales could not overcome.
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Dividend Maintenance Amid a Profit Warning
In conjunction with the disappointing quarterly results, corporate leadership substantially lowered its full-year 2025 outlook. The company now anticipates net sales of $24 billion, with an adjusted EBITDA of $3 billion.
Despite these challenges, International Paper has decided to maintain its dividend distribution. Shareholders will receive a quarterly dividend of $0.4625 per share, with the record date set for November 14, 2025. This decision raises questions for some investors, given the company’s current loss-making position.
Market Experts Express Caution
The analyst community remains cautious. The consensus rating currently stands at “Hold,” accompanied by an average price target of $50.67. However, this outlook follows recent downward revisions by several prominent firms.
Jefferies adjusted its price target downward from $59 to $51, while RBC Capital Markets reduced its target from $61 to $57. These revisions reflect growing skepticism regarding the company’s ability to navigate its operational difficulties and broader macroeconomic pressures. The central question remains whether the current corporate strategy is sufficient to engineer a sustainable recovery.
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