Movers and SHAKERS
ACCO Brands Corporation (ACCO)
Better-than-expected 1Q21 Results Driven by PowerA Acquisition; COVID Still a Negative
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.
1Q21 Revenue. ACCO's 1Q21 results were driven by the PowerA acquisition, along with EMEA. North American and International results continue to lag due to COVID-related impacts. Net sales increased 6.9% to $410.5 million from $384.1 million in 2020 due to the inclusion of $62.7 million from the PowerA acquisition. Comparable sales were $332.1 million, down 13.5%. We had forecast revenue of $390 million.
1Q21 Earnings. Earnings were impacted by a number of items, both operationally related and non-operationally related. ACCO reported an operating loss of $1.1 million, compared with an operating profit of $17.4 million in 2020. Adjusted operating profit came in at $24.6 million compared to $26.4 million in 1Q20. The Company reported a net loss of $20.4 million, or $(0.21) per share, compared with ...
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.