After it was made public by Smurfit Kappa that International Paper had made an unsolicited takeover offer for its European peer, Stephens analyst Mark Connelly, in a note entitled "Well, Now it Really Must Be the Peak," said he expects International Paper shares to sell off following the news. International Paper has a long and painful record of "top-of-the-cycle" acquisitions, and this proposed deal suggests CEO Mark Sutton won't take a different path from his predecessors, according to Connelly, who has an Equal Weight rating on International shares.

Reports Q1 revenue $4.62B, consensus $4.56B. "International Paper made progress executing our strategic initiatives in the first quarter,'' said Mark Sutton, chairman and CEO. "We saw commercial benefits from our business strategies, as well as cost benefits from mill system optimization. Although costs remain elevated and volumes were seasonally lower in the quarter, market trends continue to improve."