$IP

International Paper (IP) reports Q3 earnings on Wednesday, with analysts expecting $0.28 EPS on $6.26B revenue. Estimates have declined 11.9% recently, but the stock has a Buy consensus with a $45.40 mean target. Investors focus on margin recovery, cost execution, and the European business separation timeline. IP's turnaround strategy, involving layoffs and closures, will be tested by these results.

Paper and packaging companies like Sylvamo, Billerud, and Sustana are adding fuel surcharges due to high diesel costs, driven by geopolitical conflicts. U.S. manufacturers face limited transportation alternatives, and high freight costs are a significant headwind. Diesel prices are expected to remain elevated into 2027, according to S&P Global Energy.

Proofpoint (Thoma Bravo) to acquire Varonis Systems for $6.3B. CCC Intelligent Solutions sold to GTCR-led consortium. Bumble acquired by Ithaca Holdings. Galderma buys ZO Skin Health. STERIS acquires Xodus Medical. Private equity eyes International Paper’s EMEA packaging business.

Varonis Systems (VRNS) rose 2.5% after Proofpoint agreed to acquire it for ~$6.3B. International Paper (IP) gained 7.4% on reports of potential bids for its European packaging business. CCC (CCC) will be acquired for ~$6.1B, Galderma (GALDY) will buy ZO Skin Health for $1.5B, and Bumble (BMBL) surged 57% on a $1.3B acquisition deal. IonQ (IONQ) is acquiring Elisity for up to $1.3B, and STERIS (STE) will buy Xodus Medical for $2.1B.

International Paper (IP) shares rose 5.5% after reports that Lone Star and Atlas Holdings may bid for its European arm, potentially halting plans to spin it off publicly. The division, acquired for £5.8B in 2024, may now be valued under $6B. IP previously announced a split into two public entities, with a capital markets day set for November.

International Paper declared a $0.4625 quarterly dividend per common share and $1.00 per preferred share, payable December 15, 2026, to holders of record on November 16, 2026. The company is a leader in sustainable packaging solutions.

Wells Fargo maintained an Overweight rating for International Paper (IP) but lowered its price target from $46.00 to $42.00. The stock is undervalued by 19.6% according to GF Value™, with a GF Score™ of 67/100. Insider selling totaled $1,156,260 over the past three months. The company's P/S ratio is 0.86, lower than its historical median.

Citigroup maintained a 'Buy' rating for International Paper (IP) but lowered its price target from $48.00 to $47.00. IP is considered 19.5% undervalued with a GF Value of $39.66. The company has a GF Score of 67/100, indicating moderate financial health. Insiders have sold $1.16M in shares over the past three months. IP operates in packaging and pulp products with a market cap of $16.9B.

Verizon, LyondellBasell, Dow, Hormel Foods, and International Paper have reduced capital spending to maintain or increase dividends. Verizon cut capex from $26.74B to $17.011B, while LyondellBasell and Dow slashed dividends and growth projects. Hormel and International Paper face earnings and operational challenges. All companies face risks if their strategies don't sustain dividends.

Packaging Corporation of America (PKG) reported $2.49B revenue, up 14.7% YoY, missing EPS estimates. Crown Holdings (CCK) reported $3.67B revenue, up 16.5%, beating expectations. Silgan Holdings (SLGN) reported $1.64B revenue, up 6.8%, also beating estimates. PKG stock is up 4%, CCK down 6.2%, and SLGN down 23.8% since earnings.