Should investors worry about IP's earnings volatility?

**Investors should not be overly concerned about International Paper's (IP) earnings volatility** for the following reasons:

1. **Consistent EBITDA Guidance**: International Paper has set a robust EBITDA forecast of $3.5 to $4 billion for the current year, which aligns with BofA Securities' estimates. This indicates a strong operational performance despite some volatility in earnings.
2. **Positive Earnings Surprise**: The company recently surpassed earnings per share (EPS) expectations with a $0.53 EPS in the latest quarter, exceeding consensus by $0.04. This positive surprise suggests that International Paper's earnings are trending positively.
3. **Stable Dividend and Free Cash Flow**: International Paper has maintained a consistent dividend payment, with a current yield of approximately 5.18%. The company's free cash flow (FCF) is projected at $2 to $2.5 billion for 2027, which is notably higher than BofA's estimate. This indicates a strong capacity to generate cash, which is a positive sign for investors.
4. **Analyst Confidence**: Despite some challenges, analysts remain optimistic about International Paper's future prospects. BofA Securities has maintained a Neutral rating with a steady price target of $61, suggesting a relatively stable outlook.

While it's important to consider the potential for volatility in any investment, the factors above suggest that International Paper's earnings volatility may not be a significant cause for concern for investors. However, it's always advisable to monitor the company's performance closely, especially in the context of any global economic challenges that may impact the basic materials sector.