The Gory Details on ACCO Brands' Double Fumble

Seth Jayson, The Motley Fool
Updated

ACCO Brands (NYS: ACCO) reported earnings on May 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), ACCO Brands missed estimates on both revenue and earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP loss per share improved.


Margins dropped across the board.

Revenue details
ACCO Brands tallied revenue of $288.9 million. The four analysts polled by S&P Capital IQ expected a top line of $299.6 million on the same basis. GAAP-reported sales were 3.2% lower than the prior-year quarter's $298.4 million.

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

EPS details
EPS came in at -$0.31. The three earnings estimates compiled by S&P Capital IQ averaged $0.02 per share. GAAP EPS were -$0.31 for Q1 versus -$0.15 per share for the prior-year quarter.

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

Margin details
For the quarter, gross margin was 29%, 90 basis points worse than the prior-year quarter. Operating margin was 3.5%, 220 basis points worse than the prior-year quarter. Net margin was -6%, 330 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $356.5 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $1.51 billion. The average EPS estimate is $0.94.

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 $15.17.

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At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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