** 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

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))