Wednesday, February 17, 2021
ACCO Brands Corporation (ACCO)
Fourth Quarter Results In-line with Estimates
ACCO Brands Corporation designs, manufactures, sources, markets, and sells office products, academic supplies, and calendar products primarily in the United States, Canada, Northern Europe, Brazil, Australia, and Mexico. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers office products, such as stapling, binding and laminating equipment, and related consumable supplies, as well as shredders and whiteboards; and academic products, including notebooks, folders, decorative calendars, and stationery products. It also provides private label products, as well as business machine maintenance and repair services. The company offers its business, academic, and calendar product lines under the Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Wilson Jones, and other brand names. In addition, it designs, sources, distributes, markets, and sells accessories for laptop and desktop computers, and tablets comprising security products; input devices, such as presenters, mice, and trackballs; ergonomic aids, including foot and wrist rests; docking stations; and other personal computers and tablet accessories under the Kensington, Microsaver, and ClickSafe brand names. The company sells its products to consumers and commercial end-users primarily through resellers, including traditional office supply resellers, wholesalers, mass merchandisers, and retailers, as well as directly to consumers through on-line and direct mail. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
4Q20 Results. ACCO Brands reported fourth quarter revenue of $460 million, down 14% y-o-y. EPS totaled $0.31 versus $0.44 a year ago. Adjusted EPS was $0.32 compared to $0.46 in 4Q19. We had forecast revenue of $456 million, EPS of $0.30 and adjusted EPS of $0.28. For the full year, ACCO reported revenue of $1.66 billion, down 15%, EPS of $0.65 versus $1.06, and adjusted EPS of $0.70 versus $1.20 in 2019. PowerA added $8 million to revenue for the year.
EMEA 4Q Driving Force. EMEA posted a strong 4Q with net sales of $171.7 million, up 6%, although down 1% on a comparable basis. Since the 2Q20 nadir, EMEA has posted strong sequential top line growth with revenues rising from $88.3 million in 2Q to $136.4 million in Q3 to $171.7 million in Q4. Sell through of computer accessories, shredders, air purifiers, and DIY tools drove the improved …
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.
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