Wednesday, August 10, 2022

ACCO Brands (ACCO)
Post Call Commentary

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Hit the Reset Button. The major drag on 2Q results and full year guidance is PowerA. After a fantastic 2021, a lack of chips for consoles and a more normalized level of demand post-COVID resulted in PowerA sales declining in 2Q. ACCO’s management also gave an updated full year projection for PowerA, for which sales are estimated to be down 10-15%, or about $25-$40 million, for all of 2022.

Forex No Friend. The other major contributor to reduced guidance is forex headwinds. Forex is now expected to have a negative 4.5% impact on revenue for the year, up 200 bp from management’s previous expectation. Outside of PowerA and forex, the rest of ACCO’s business looks solid, although a significant economic downturn could change that view….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.