Friday, May 03, 2024
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, Managing Director, Equity Research Analyst, Generalist , 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.
Overview. ACCO continues to see persistent consumer and business spending weakness, impacting top line revenue. However, the previously announced $60 million cost reduction program enabled the Company to grow gross margin by 120 basis points y-o-y. Management is exploring additional initiatives given the weaker than expected operating environment.
Results. Revenue declined 10.9% y-o-y to $358.9 million. Management had expected a 6.5%-8% decline. Comp sales fell 11.3%, while favorable forex added 0.4%. Adjusted operating income was $16.2 million versus $24.3 million in 1Q23. GAAP net loss was $6.3 million, or $0.07/sh, compared to a net loss of $3.7 million, or $0.04/sh, last year. Adjusted EPS was $0.03 in 1Q24, compared to $0.09/sh last year. We had forecast revenue of $370 million, a GAAP loss of $8.8 million, or a loss of $0.09/sh, and adjusted EPS of $0.01.
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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.