Analyst Note
| Spencer Liberman |International Paper reported third-quarter results that were largely in line with our expectations. Revenue increased 10% year over year and was roughly flat sequentially as higher selling prices offset another quarter of declining volume. While International Paper continues to make pricing gains, higher operating and input costs weighed on margins during the quarter. Consolidated operating margins contracted 150 basis points from a year ago to 7.2%. We are maintaining our fair value estimate of $52 per share.