Movers and SHAKERS
ACCO Brands Corporation (ACCO)
Post 2Q Call Commentary; Lowering PT to $10
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.
Segment Results. North American sales fell 24.7% to $231.7 million while adjusted operating income fell 29.8% to $42.4 million. While back-to-school sales were solid, there were significant declines in the commercial office products space. EMEA sales of $88.3 million fell 31.2% with the segment posting an adjusted operating loss of $1.1 million compared to adjusted operating income of $7.4 million last year. International sales came in at $46.9 million, down 43.2% with an adjusted operating loss of $3.2 million versus $4.4 million of adjusted operating income last year. All segments were impacted by lower demand due to COVID-19.
Cost Reductions. Second quarter cost reductions came in at $33 million, well above management's previous $20 million estimate. ACCO is taking additional measures to right-size the business in certain markets which should result in an additional ...
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.