ACCO Brands Misses on the Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

ACCO Brands (NYS: ACCO) reported earnings on April 26. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue grew significantly. GAAP loss per share dropped.


Gross margins dropped, operating margins contracted, net margins increased.

Revenue details
 ACCO Brands notched revenue of $352.0 million. The six analysts polled by S&P Capital IQ expected to see a top line of $383.7 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $288.9 million.

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 -$0.08. The seven earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. GAAP EPS were -$0.08 for Q1 against -$0.31 per share for the prior-year quarter.

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 27.5%, 150 basis points worse than the prior-year quarter. Operating margin was 0.1%, 400 basis points worse than the prior-year quarter. Net margin was -2.6%, 340 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $465.4 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $1.92 billion. The average EPS estimate is $1.00.

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 $10.67.

Looking for alternatives to ACCO Brands? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

The article ACCO Brands Misses on the Top and Bottom Lines originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement