Tuesday, August 09, 2022
ACCO Brands (ACCO)
First Look: 2Q22
ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
2Q22 Operating Results. ACCO reported 2Q22 revenue of $521 million, up 0.6% year-over-year and up 5.2% on a comparable basis, with all segments posting growth. ACCO has now recorded five consecutive quarters of comparable sales growth. We had forecast revenue of $545 million. Adjusted EPS was $0.37, compared to $0.43 last year. We had forecast adjusted EPS of $0.44.
Forex, Economic Conditions Restrain Growth. Slower economic growth, increased inflation, and unfavorable foreign currency impacts resulted in a more challenging quarter than anticipated. Adverse foreign exchange reduced sales by $23.6 million in the quarter, while a lack of computer chips resulted in lower sales of gaming accessories. Operating income benefited from $9.4 million of contingent earnout income related to the PowerA acquisition….
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.
