ACCO Brands Q2 sales beat estimates

Overview

• ACCO Brands Q2 net sales of $395 mln beat analyst expectations, as per LSEG data

• The supplier of school, office, and consumer products posts adjusted EPS of $0.28

Outlook

• Company expects Q3 sales to decline 5.0% to 8.0%

• ACCO Brands anticipates Q3 adjusted EPS of $0.21 to $0.24

• Full-year sales expected to decline 7.0% to 8.5%

• Company forecasts full-year adjusted EPS of $0.83 to $0.90

Result Drivers

• TARIFF DISRUPTIONS - Sales negatively impacted by purchasing disruptions following tariff announcements, with trends improving sequentially

• COST REDUCTION - Over $40 mln in savings realized from multi-year cost reduction program, aiding in offsetting lower sales volume

• GAMING ACCESSORIES - Growth in gaming accessories partially offset softer demand for consumer and business products

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support supplies peer group is "buy."

• Wall Street's median 12-month price target for ACCO Brands Corp is $11.00, about 65.6% above its July 30 closing price of $3.78

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nBwbjdmTRa