Cramer: Good Company or Bad Numbers, What Matters More?

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What happens when a company with fabulous execution nevertheless manages to miss the numbers?

"Consider the case of International Paper, " said Jim Cramer.

The stock sold off Thursday after International Paper posted a lower-than-expected profit on Thursday due to weak sales of consumer packaging in North America and Asia.

Looking at the numbers a little more closely, International Paper reported third-quarter 2012 adjusted earnings of 75 cents per share, down 7% from the prior-year quarter earnings of 81 cents per share.

The result also fell short of the Zacks Consensus Estimate of 77 cents.

However, "International Paper, under the leadership of its terrific CEO John Faraci, has been transforming itself for years, selling off its land holdings, shifting from paper towards packaging products, and then buying Temple-Inland earlier this year in a really terrific deal that's allowing them to cut costs left and right while taking out a ton of capacity," said Cramer.

"Plus, International Paper pays you to wait with a juicy 3.4% yield, and they just raised the dividend earlier this month," added the Mad Money host.

And that begs the question, despite the weak earnings, is the stock worth buying?

To get a better sense of the quarter and what comes next, Jim Cramer checked in with John Faraci, the Chairman and CEO of International Paper. Watch the video now!

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