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Acco Brands (ACCO) closed the last trading session at $5.04, gaining 1.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $10.83 indicates an 114.9% upside potential. The mean estimate comprises three short-term price targets with a standard deviation of $2.93. While the lowest estimate of $7.50 indicates a 48.8% increase from the current price level, the most optimistic analyst ex ...

stevecoleimages/E+ via Getty Images ACCO Brands (NYSE:ACCO) is a manufacturer of consumer products largely focused on office and school environments, as well as certain electronic products which serve those markets and extend beyond into gaming. ACCO’s primary historical feature from an investment standpoint is as a perpetual value stock – regardless of cash flows and earnings, the company’s shares have always been cheap from an objective standpoint. We’ve previously argued that a key factor for this pe ...

Start Time: 08:30 January 1, 0000 9:12 AM ET ACCO Brands Corporation (NYSE:ACCO) Q1 2024 Earnings Conference Call May 03, 2024, 08:30 AM ET Company Participants Tom Tedford - President and CEO Deborah O'Connor - EVP and CFO Christopher McGinnis - Senior Director of IR Conference Call Participants Gregory Burns - Sidoti Joseph Gomes - NOBLE Capital Kevin Steinke - Barrington Research Hale Holden - Barclays William Reuter - Bank of America Operator Hello, and welcome to the ACCO Brands First Quarter 2024 Earn ...

nummannum BRANDS ACCO Brands | 1Q Earnings Conference Call | May 3, 2024 Forward-Looking Statements Statements contained herein, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, strategies, business operations and similar matters, results of operations, liquidity and financial condition, and those relating to cost reductions and anticipated pre-tax savings and restructuring costs are "forward-looking statements" within the me ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-08454 ACCO Brands Corporation (Exact Name of Registrant as Specified in Its Charter) Delaware 36-2704017 (State or Other Jurisdiction of (I. ...

Financial Performance - Reported net sales of $359 million, a decline of 10.9% from $402.6 million in Q1 2023[3] - Adjusted EPS of $0.03, compared to $0.09 in Q1 2023, with a net loss of $6.3 million or $(0.07) per share[4] - Operating income decreased to $5.9 million from $10.1 million in the prior year, with adjusted operating income at $16.2 million down from $24.3 million[4] - Net loss for Q1 2024 was $6.3 million, compared to a net loss of $3.7 million in Q1 2023, representing a 70.3% increase in losses[22] - Adjusted EBITDA for Q1 2024 was $28.3 million, a decrease of 27.1% compared to $38.8 million in Q1 2023, representing 7.9% of net sales[36] - The company reported a basic loss per share of $0.07 for Q1 2024, compared to a loss of $0.04 per share in Q1 2023[22] - Total GAAP net sales decreased by 10.9% in Q1 2024, with a comparable sales change of (11.3)% when excluding material acquisitions[39] Cash Flow and Leverage - Free cash flow improved to $25.9 million from an outflow of $25.2 million in 2023, with operating cash flow at $28.2 million[5] - Consolidated net leverage ratio improved to 3.5x from 4.3x year-over-year[5] - The company plans to maintain a year-end consolidated leverage ratio of approximately 3.0x to 3.2x[10] - Cash and cash equivalents increased to $124.6 million as of March 31, 2024, up from $66.4 million at the beginning of the period[23] - Total current liabilities decreased to $473.3 million in Q1 2024 from $542.0 million in Q4 2023, a reduction of 12.7%[22] - Total assets decreased to $2,543.6 million as of March 31, 2024, down from $2,644.8 million at the end of 2023[21] - Long-term debt increased slightly to $897.5 million in Q1 2024 from $882.2 million in Q4 2023[21] Cost Management and Savings - The company is on track to achieve over $20 million in cost savings from its multi-year cost reduction program[1] - Investment in new product development and innovation continues despite the challenging demand environment[2] Future Projections - Full year 2024 sales expected to decline by 5.0% to 7.0%, with adjusted EPS projected between $1.02 and $1.07[10] - Second quarter sales anticipated to decrease by 7.0% to 9.0%, with adjusted EPS expected between $0.30 and $0.33[10] Profitability Metrics - Gross profit for Q1 2024 was $110.4 million, down 7.5% from $119.3 million in Q1 2023, resulting in a gross profit margin of 30.8%[22] - Operating income decreased by 41.6% to $5.9 million in Q1 2024 from $10.1 million in Q1 2023, reflecting a decline in operating income margin to 1.6%[22] - Adjusted net income per diluted share for Q1 2024 was $0.03, compared to $0.09 in Q1 2023, indicating a decline in profitability[33] Restructuring and Charges - The company reported a restructuring charge of $0.3 million in Q1 2024, compared to a restructuring credit of $3.3 million in Q1 2023[36] - Amortization of intangibles was $10.6 million in Q1 2024, slightly down from $10.9 million in Q1 2023[36] Taxation - The effective tax rate for Q1 2024 was adjusted to 29.0%, reflecting the company's estimated annual non-GAAP tax rate[33]

Sales Performance - Q1 2023 reported net sales for ACCO Brands Americas were $230.0 million, down from $244.4 million in Q1 2022, representing a decrease of 5.9%[4] - Total reported net sales for Q1 2023 were $402.6 million, a decline of 8.8% from $441.6 million in Q1 2022[4] - Q2 2023 reported net sales for ACCO Brands Americas increased to $336.4 million, while adjusted operating income rose to $66.8 million, reflecting a margin of 19.9%[4] - Total reported net sales for Q2 2023 were $493.6 million, with an adjusted operating income of $66.2 million, representing a margin of 13.4%[4] - Q3 2023 reported net sales for ACCO Brands Americas were $284.4 million, with an adjusted operating income of $40.0 million, reflecting a margin of 14.1%[4] - Total reported net sales for Q3 2023 were $448.0 million, with an adjusted operating income of $46.0 million, representing a margin of 10.3%[4] - Q4 2023 reported net sales for ACCO Brands Americas were $284.9 million, with an adjusted operating income of $49.6 million, reflecting a margin of 17.4%[4] - Total year-to-date reported net sales were $1,832.8 million[4] Operating Income - Q1 2023 adjusted operating income for ACCO Brands Americas was $18.7 million, with an adjusted operating income margin of 8.1%, compared to $21.9 million and 9.0% in Q1 2022[4] - Q2 2023 adjusted operating income rose to $66.8 million, reflecting a margin of 19.9%[4] - Total reported net sales for Q2 2023 were $493.6 million, with an adjusted operating income of $66.2 million, representing a margin of 13.4%[4] - Q3 2023 adjusted operating income was $40.0 million, reflecting a margin of 14.1%[4] - Total reported net sales for Q3 2023 were $448.0 million, with an adjusted operating income of $46.0 million, representing a margin of 10.3%[4] - Q4 2023 adjusted operating income was $49.6 million, reflecting a margin of 17.4%[4] - Total year-to-date adjusted operating income was $204.8 million, representing a margin of 11.2%[4] - The company reported a total adjusted operating income margin improvement of 30.6% year-to-date compared to the previous year[4]

Core Viewpoint - Acco Brands reported better-than-expected fourth-quarter earnings but provided disappointing guidance for 2024, leading to a significant drop in share price [1][2]. Group 1: Financial Performance - Acco Brands earned $0.39 per share in the fourth quarter, exceeding Wall Street's estimate of $0.33 per share, with sales of $488.6 million compared to the expected $476 million [2]. - However, fourth-quarter sales declined by 2.2% year-over-year and 5.9% for the entire year, attributed to a challenging macroeconomic environment and lower-than-expected return-to-office trends [2]. - The company forecasts a sales decline of 2% to 5% for 2024 and first-quarter earnings between $0.01 and $0.04 per share, while Wall Street had predicted $0.08 per share [2]. Group 2: Strategic Initiatives - Acco Brands is implementing a multiyear restructuring program aimed at cutting annual costs by at least $60 million, which includes shedding plants and reducing headcount [3]. - Despite revenue declines, the company improved its gross margin by 420 basis points in 2023 and increased operating cash flow by $51 million to $128.7 million [3]. Group 3: Investment Considerations - Following the decline in share price, Acco Brands offers a dividend yield of 5.42%, presenting a potential value proposition for investors looking for a turnaround [3]. - There are ongoing risks related to the post-pandemic office and work environment, but the company appears to provide a better value proposition post-earnings [3].

Financial Data and Key Metrics Changes - Reported sales for Q4 2023 decreased by 2.5% year-over-year, while comparable sales excluding foreign exchange were down 5% [20] - Adjusted EPS for Q4 was $0.39, up from $0.32 in 2022, reflecting a 31% increase in adjusted operating income [21] - Consolidated net leverage ratio improved to 3.4x, down from 4.2x at the end of 2022 [7][26] Business Line Data and Key Metrics Changes - North America reported and comparable sales both declined by 11%, primarily due to lower demand for computer accessories [22] - EMEA reported sales declined by 6%, with comparable sales down 7%, driven by lower sales of technology accessories [24] - International segment saw reported sales increase by 8% and comparable sales up by 5%, led by recovery in Latin America [25] Market Data and Key Metrics Changes - The demand environment in North America and EMEA remained muted, with office occupancy rates stabilizing at 40% to 50% of pre-pandemic levels [12] - The gaming accessories market experienced uneven demand throughout 2023, impacted by lower consumer spending and increased competition [10][24] Company Strategy and Development Direction - The company is implementing a multiyear cost restructuring program targeting at least $60 million in annual savings by late 2026 [13][19] - Focus on innovation and new product development is emphasized, particularly in computer and gaming accessories [15][56] - The company is exiting low-margin businesses, particularly in the North American segment, to focus on more value-added revenue streams [46] Management's Comments on Operating Environment and Future Outlook - Management anticipates softer sales in 2024 due to muted consumer demand and uncertainty in business spending [28] - The company expects a modest recovery in technology spending, particularly in the second half of 2024 [28][36] - Management remains cautious but optimistic about the potential for recovery in the PC market and gaming accessories [36] Other Important Information - A noncash goodwill impairment charge of $90 million was recognized, primarily affecting the North America segment [20] - Adjusted SG&A expenses increased to $102 million in Q4, up from $93 million, due to a normalized level of incentive compensation [21] Q&A Session Summary Question: Was the goodwill impairment tied to any specific acquisition? - The impairment was broad-based across the portfolio, reflecting challenges in forecasting and higher WACC due to interest rates [33] Question: What gives confidence in the outlook for technology spending? - Signs of life in parts of the technology accessories business and historical trends suggest a rebound is likely [36] Question: What drove the better-than-expected fourth-quarter top line? - Demand moderated slightly in the fourth quarter, contributing to better-than-expected results [42] Question: Have there been significant shifts to generic products from branded? - No significant shifts in market share have been observed; brands have held up well [44] Question: What specific low-margin businesses is the company exiting? - The exits are predominantly in private-label businesses and certain wellness products impacted by pandemic pricing pressures [46][47] Question: What is the nature of the new competition in gaming accessories? - Increased competition is from both existing competitors becoming more aggressive and new entrants into certain markets [48] Question: How were POS in traditional office products in Q4? - POS moderated in Q4, reflecting improvement in trends across key business categories [54] Question: What categories is the company focusing on for innovation? - The company is focusing on computer accessories and gaming accessories for new product development [56]