Can IP rebound after disappointing 2024 earnings?

**International Paper (IP) faces a challenging road to recovery after disappointing 2024 earnings**, and several factors indicate that a rebound might be difficult in the near term:

1. **Economic Headwinds**: The company's performance has been hindered by lower volumes and higher mill outage expenses, which are likely to persist in the near term. This suggests that IP may struggle to capitalize on favorable market conditions in the immediate future.
2. **Analyst Expectations**: Analysts have lowered their Q3 2024 EPS estimates for International Paper, indicating a lack of confidence in a swift recovery. The consensus estimate for Q4 2024 revenue is $0.16 billion, and earnings are expected to come in at $0.76 per share. These figures suggest that while there may be some improvement, it is not expected to be significant.
3. **Market Sentiment**: Despite a 3.8% increase in IP's stock price since the last earnings report, which outperformed the S&P 500, there is a cautious sentiment among analysts, with a "Moderate Buy" rating and a consensus view that suggests more bullishness than three months ago, but not a strong rebound expectation.
4. **Strategic Initiatives**: While International Paper has initiated a strategy to deliver profitable growth, the stabilization of earnings and the intended acceleration of earnings improvement in 2025 suggest a longer-term recovery plan. This implies that a rebound might be more gradual than immediate.
5. **Industry Conditions**: The paper and packaging industry is competitive, and IP faces challenges from lower prices in both the Industrial Packaging and Global Cellulose Fibers segments. These conditions are unlikely to improve rapidly, affecting IP's ability to rebound swiftly.

In conclusion, while there is some potential for a rebound as indicated by the recent stock price increase and strategic initiatives, the overall sentiment and analyst expectations suggest that a significant rebound is not imminent. Investors should expect a more gradual recovery process for International Paper.