International Paper Co. issued a warning late Tuesday saying its third-quarter earnings would miss analyst consensus estimates due to a shortfall in land sales. International Paper expects EPS greater than the $0.52 it earned in Q2, compared to analyst expectations of $0.63. International Paper previously forecasted land sales earnings of $110 million to $140 million in Q3, but now expects approximately $100M. Separately, International Paper said results from its $1.6 billion 50:50 joint venture with Russia's Ilim Group will be included in the company's Q1 2008 financial statements and will continue to be reported on a one-quarter lag. Shares of International Paper rose 1.76% to $37.06 during Tuesday's regular session, but dropped 2.8% to $36.06 in extended trading.
Sources: Press release, MarketWatch, Reuters
Commentary: Stocks Making New Highs: Early Signs of Market Strength? • International Paper: Strong Growth From Foreign Markets • Tight Timber Market Creates Investment Opportunities, But Beware Locality
Stocks/ETFs to watch: IP. Competitors: MWV, WY. ETFs: PRFM, XLB, IYM
Related: International Paper heads to Siberia (MarketWatch)
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