ACCO Brands Earnings Preview: What to Expect on October 31st
Investors are gearing up for ACCO Brands’ upcoming quarterly earnings release, scheduled for Thursday, October 31st, 2024. While analysts predict an earnings per share (EPS) of $0.23, the market’s focus will be on whether the company surpasses these estimates and provides positive guidance for the next quarter. It’s essential to remember that while earnings performance holds weight, market reactions often hinge on the guidance provided by companies.
A Glimpse into Past Performance
Looking back at ACCO Brands’ previous earnings releases, we see a mixed bag of results. In the last quarter, the company exceeded EPS expectations by $0.06. However, this positive news resulted in a 6.63% decline in the share price during the following trading session. Here’s a quick summary of ACCO Brands’ past performance and the resulting price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | $0.31 | $0.37 | -7.00% |
| Q1 2024 | $0.02 | $0.03 | -1.0% |
| Q4 2023 | $0.33 | $0.39 | -13.0% |
| Q3 2023 | $0.23 | $0.24 | -3.0% |
Analyst Insights: Gauging Market Sentiment
For investors, understanding the prevailing market sentiment and expectations for a company is crucial. Analysts have provided a total of 1 rating for ACCO Brands, with the consensus rating being Outperform. The average one-year price target stands at $7.0, signifying a potential 43.74% upside.
Peer Analysis: Benchmarking Performance
Comparing ACCO Brands to its industry peers can offer valuable insights into its relative performance and market positioning. Let’s examine three key players in the industry: NL Industries, Interface, and Steelcase.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside (%) |
|—|—|—|—|
| ACCO Brands | Outperform | $7.0 | 43.74% |
| NL Industries | Underperform | $6.0 | 23.2% |
| Interface | Outperform | $22.0 | 351.75% |
| Steelcase | Outperform | $16.0 | 228.54% |
Comprehensive Peer Analysis Summary
A deeper dive into key metrics for these companies reveals the following:
| Company | Consensus | Revenue Growth (%) | Gross Profit ($M) | Return on Equity (%) |
|—|—|—|—|
| ACCO Brands | Outperform | -11.20% | $152.60 | -18.20% |
| NL Industries | Underperform | -1.99% | $11.16 | 2.11% |
| Interface | Outperform | 5.17% | $122.61 | 5.10% |
| Steelcase | Outperform | 0.14% | $295.40 | 6.75% |
Key Takeaway:
ACCO Brands lags behind its peers in terms of revenue growth and gross profit. However, it ranks highest in Return on Equity.Understanding ACCO Brands: Business Overview
ACCO Brands Corp is a global leader in the design, manufacture, and marketing of consumer and business products. The company operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. ACCO Brands’ diverse product portfolio includes school notebooks, janitorial supplies, whiteboards, storage and organization products, sheet protectors, indexes, punching products, computer accessories, and more. These products find their way into schools, homes, and businesses worldwide. The company’s portfolio of brands includes AT-A-GLANCE, Five Star, GBC, Hilroy, Kensington, Quartet, Leitz, NOBO, and many others. ACCO Brands distributes its products through a variety of channels, including mass retailers, e-tailers, discount and variety chains, and warehouse clubs. The ACCO Brands North America segment generates the majority of the company’s profits.
Unveiling the Financial Story of ACCO Brands
Market Capitalization Analysis:
ACCO Brands’ market capitalization falls below industry benchmarks, indicating a smaller size compared to its peers. This could be attributed to factors such as growth expectations or operational capacity.Revenue Challenges:
ACCO Brands has experienced challenges in revenue growth over the past 3 months. As of June 30th, 2024, the company recorded a decline of approximately -11.2%. This indicates a decrease in top-line earnings. Compared to its competitors, ACCO Brands’ growth rate is lower than the average among peers in the Industrials sector.Net Margin:
ACCO Brands’ net margin is below industry standards, highlighting difficulties in achieving strong profitability. With a net margin of -28.56%, the company may face challenges in effective cost control.Return on Equity (ROE):
ACCO Brands’ ROE is below industry standards, indicating challenges in efficiently utilizing equity capital. With an ROE of -18.2%, the company may struggle to deliver satisfactory returns for shareholders.Return on Assets (ROA):
ACCO Brands’ ROA is below industry standards, suggesting challenges in efficiently utilizing assets. With an ROA of -5.05%, the company may encounter difficulties in delivering satisfactory returns from its assets.Debt Management:
ACCO Brands’ debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.74, the company relies heavily on borrowed funds, indicating a higher level of financial risk.Stay Tuned for the Earnings Release:
To stay up-to-date with all earnings releases for ACCO Brands, visit their earnings calendar on our site.
