The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ACCO Brands missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share increased significantly.
Margins increased across the board.
ACCO Brands logged revenue of $350.7 million. The three analysts polled by S&P Capital IQ wanted to see net sales of $372.5 million on the same basis. GAAP reported sales were 5.9% lower than the prior-year quarter's $372.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.29. The three earnings estimates compiled by S&P Capital IQ forecast $0.27 per share on the same basis. GAAP EPS of $0.16 for Q4 were 45% higher than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.2%, 30 basis points better than the prior-year quarter. Operating margin was 10.3%, 60 basis points better than the prior-year quarter. Net margin was 2.7%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $296.5 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $1.32 billion. The average EPS estimate is $0.84.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 76 members out of 113 rating the stock outperform, and 38 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give ACCO Brands a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ACCO Brands is outperform, with an average price target of $11.92.
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