Movers and SHAKERS
ACCO Brands Corporation (ACCO)
A Third Quarter Beat
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.
3Q20 Results. Revenue of $444.1 million declined 12.2% y-o-y with comp sales off 12.3%. GAAP net income totaled $18.8 million, or $0.20 per share, compared to $28.0 million, or $0.28, last year. Adjusted net income was $18.1 million, or $0.19 per share, versus $31.3 million, or $0.32 per share, in 3Q19. Quarterly results were negatively impacted by the COVID crisis, which reduced revenue and operating leverage. Sales were better than expected and profit was at the high end of guidance. We had forecast revenue at $405 million and adjusted net income of $0.13, while consensus was $410 million and $0.15, respectively.
Cost Reductions. Once again, savings from cost reductions drove profits. Cost reduction actions reduced 3Q expenses by some $20 million, above the $11 million previously anticipated, and year-to-date cost savings were $63 million as management swiftly adjusted to the COVID operating environment. In the fourth quarter, the company expects to achieve an additional $15 million of cost savings ...
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.