Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: ACCO

ACCO Brands Shares Trade 15% Higher on Record Yearly Sales and Earnings

Share on Stocktwits

Source:

ACCO Brands Corp. traded higher after the company reported both record annual sales and adjusted earnings per share.

Designer, manufacturer and marketer of branded academic, consumer and business products firm ACCO Brands Corp. (ACCO:NYSE) yesterday announced its fourth quarter and full year results for the period ended December 31, 2019.

For FY/19 the company reported that it achieved record net sales of $1.96 billion, up 1% percent compared to $1.94 billion in FY/18. The firm indicated that FY/19 earnings per share (EPS) were $1.06, versus $1.00 EPS in FY/18 and that it earned a record adjusted EPS of $1.20, versus $1.14 adjusted EPS over the same corresponding period.

For Q4/19 the firm advised that net sales increased by 1.5% to $537.4 million, compared to $529.3 million in Q4/18. The company stated that Q4/19 EPS improved to $0.44 versus $0.34 in Q4/18, and adjusted EPS increased to $0.46 compared to $0.41 in Q4/18.

ACCO advised that its outlook for 2020 is for "adjusted EPS of $1.20 to $1.30." The company added that the 2020 outlook includes an adverse foreign exchange impact of 1% on sales and $0.03 on adjusted EPS.

Boris Elisman, chairman, president and CEO of ACCO Brands, commented, "I am very pleased with our results for the fourth quarter and full year and want to congratulate ACCO Brands employees for delivering record annual sales and adjusted EPS, and the second highest free cash flow ever...Our company enters a new decade as a growing, well-diversified, branded consumer, school, and office products business with a track record of product innovation, strong in-market execution, and efficient operations. In 2020, we are expecting another year of strong progress against our strategic imperatives."

The firm reported that ACCO Brands North America sales in FY/19 increased 2.8% to $966.8 million driven by higher pricing that offset the impact of inflation and tariffs, as well as a strong back-to-school season and that ACCO Brands International sales rose by 6.1% to $419.6 million.

ACCO Brands is headquartered in Lake Zurich, Ill., and states that "it is one of the world's largest designers, marketers and manufacturers of branded academic, consumer and business products." Some of the firms more widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Mead®, Rexel®, Swingline®, Tilibra® and many others. The company sells its products in more than 100 countries worldwide.

ACCO Brands has a market capitalization of around $900 million with approximately 97 million shares outstanding. ACCO shares opened higher today at $9.67 (+$0.51, +5.57%) over yesterday's $9.16 closing price and then climbed to a new 52-week high price this morning of $11.3799. The stock has traded today between $9.67 and $11.3799 per share and is currently trading at $10.49 (+$1.33, +14.52%).

[NLINSERT]

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.





Want to read more about Special Situations investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe