International Paper Earnings: Strong Pricing Offsets Volume Headwinds; Turnaround Progressing

No-moat-rated International Paper reported solid fourth-quarter results as the company continues to make progress on its 80/20 strategy. Net sales were roughly flat year over year as the company works through this transition period. While International Paper has launched its new 80/20 strategy, it is also finalizing a deal to acquire DS Smith for $7.22 billion. Nevertheless, end-market demand for packaging remains challenging but price increases have helped offset some of the decline. As such, we have maintained our $47 per share fair value estimate.