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ACCO Brands Increases Sales but Misses Revenue Estimate

By Seth Jayson – Updated Apr 10, 2017 at 12:29PM

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Just the facts, Fool.

ACCO Brands (NYSE: ACCO) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), ACCO Brands missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.

Gross margins grew, operating margins shrank, net margins dropped.

Revenue details
ACCO Brands logged revenue of $440.2 million. The six analysts polled by S&P Capital IQ expected a top line of $457.9 million on the same basis. GAAP reported sales were 0.3% higher than the prior-year quarter's $438.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
EPS came in at $0.19. The seven earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. Non-GAAP EPS of $0.19 for Q2 were 27% lower than the prior-year quarter's $0.26 per share. GAAP EPS of $0.08 for Q2 were 92% lower than the prior-year quarter's $0.98 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
For the quarter, gross margin was 31.1%, 30 basis points better than the prior-year quarter. Operating margin was 10.0%, 160 basis points worse than the prior-year quarter. Net margin was 2.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $511.2 million. On the bottom line, the average EPS estimate is $0.36.

Next year's average estimate for revenue is $1.87 billion. The average EPS estimate is $0.91.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ACCO Brands is outperform, with an average price target of $9.57.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

ACCO Brands Corporation Stock Quote
ACCO Brands Corporation
ACCO
$4.90 (-1.80%) $0.09

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