Movers and SHAKERS
ACCO Brands Corporation (ACCO)
1Q20 Met Expectations in Spite of COVID-19
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.
1Q20 Results. Sales decreased 2.5% to $384.1 million in the quarter while net income was $8.0 million or $0.08 per share. We were at $397 million and $0.07, respectively. Consensus was $396 million and $0.09. Adjusted EPS was $0.07. Notably, North American sales rose 4.6%, with comp sales up 4.7%, but EMEA was down 13%, with comp sales off 10.1%. International sales were up 2.1% due to the Foroni acquisition but down 7.5% on a comp basis.
COVID Response. ACCO has taken steps to combat the impact of the crisis. New cost reduction actions are expected to reduce expenses by approximately $20 million in the second quarter. The Company's balance sheet remains strong, liquidity is good and there are no debt maturities until 2024. ACCO amended its debt maintenance covenant to provide...
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.