Is IP's revenue cost management improving in recent quarters?

International Paper's (IP) revenue and cost management has shown some improvements and challenges recently:

1. **Revenue Growth and Market Position**:
- IP's net sales for 2024 were $18,619 million, reflecting a 2% decrease from the previous year, primarily due to lower sales volumes but partially offset by higher sales prices.
- The Industrial Packaging segment reported net sales of $15.5 billion, slightly down from $15.6 billion in 2023, with operating profits increasing by 3% due to higher sales prices and lower maintenance costs.
2. **Cost Management and Profitability**:
- IP's gross margin as of December 31, 2024, was 28.16%, which is a notable figure considering the overall market conditions.
- The company's net margin was 2.99% on the same date, indicating that IP is managing to convert a reasonable portion of its revenue into net income.
- IP's operating margin was 0.79% as of December 31, 2024, suggesting that the company is managing its operating expenses effectively.

|code|Ticker|Name|Date|Gross Profit Margin|Operating Profit Margin|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|---|
|IP|IP.N|International Paper|2024 Q1|25.8714|1.840225156960381|1.2124|169|
|IP|IP.N|International Paper|2024 Q2|27.4671|3.111301186784989|5.9232|169|
|IP|IP.N|International Paper|2024 Q3|27.8724|2.6426383645558804|5.0146|169|
|IP|IP.N|International Paper|2024 Q4|28.1594|0.7895160857188893|2.9916|169|

3. **Challenges and Strategic Initiatives**:
- Despite the improvements, IP faced challenges such as lower sales volumes and higher operating costs, which impacted its profitability.
- The company has been actively managing its cost structure, optimizing operations, and implementing commercial improvements to enhance its financial performance.
- IP has set targets for rising earnings and revenue in the coming years, aiming for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of between $5.5 billion and $6 billion in 2027.
4. **Quarterly Performance and Trends**:
- In the third quarter of 2024, IP's adjusted earnings per share were $0.44, which was 83% above analysts' consensus estimates, despite a 31% decline in volume.
- The fourth quarter of 2024 was particularly challenging for IP, with a net loss of $147 million, or $0.42 per diluted share.

In conclusion, while International Paper has shown resilience in managing its revenue and costs, particularly in its Industrial Packaging segment, it has faced significant challenges from lower sales volumes and higher operating costs. The company's strategic initiatives and target improvements in earnings and revenue for the future suggest a positive outlook for IP's cost management and profitability.