Shares of International Paper Co. (NYSE: IP – $46.07) are moving higher by 4% after a profit beat offset a slight revenue miss. Memphis, Tennessee-based IP said it had net income of $424 million, down from $729 million in the year-earlier period. Adjusted per-share earnings, however, came to $1.11 vs. $0.94 last year and ahead of the $0.91 consensus, thanks to strength in the printing and cellulose fiber businesses. Sales edged up to $5.643 billion from $5.621 billion, just below Street views of $5.729 billion, but all three business units (Industrial Packaging, Global Cellulose Fibers and Printing Papers) were positive from a year ago. “Looking ahead to the second quarter, we anticipate improved seasonal demand and we are well positioned to continue generating strong cash flows in 2019,” Chief Executive Mark Sutton said in a statement.
Not for the risk-averse, shares in International Paper yielding 4.5%, hold good recovery potential over the 3- to 5- year investment horizon. The shares yield 4.5%.