International Paper drops after Q1 results miss

International Paper's IP.N shares down 2% premarket to $46.68 after packaging firm's qtrly results fall shy of Wall Street's expectations

Memphis, Tennessee-based firm said Q1 sales rose 28% y/y to $5.9 bln and it posted adj EPS of 23 cents vs loss of 2 cents a yr ago, driven by acquisition of UK rival DS Smith

But analysts had called for sales of $6.2 bln and adj EPS of 37 cents, according to LSEG data

Overall market demand was softer than anticipated in both the North American and Europe, Middle East and Africa regions, CEO Andy Silvernail said in the statement

Demand hit as consumers reined in spending amid persistent inflation and fears of a recession due to a global trade war

In Jan, IP closed buy of DS Smith in $7.2 bln deal

Of 13 analysts covering IP, recommendation breakdown is 7 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell" ratings; median PT is $58.40 - LSEG

Through Tues close, stock down 11.5% YTD vs 0.5% decline in S&P 500 Materials sector .SPLRCM