Why ACCO Brands Shares Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Office product maker ACCO Brands  jumped as much as 15.6% today after announcing preliminary fourth-quarter results.

So what: Management expects full-year revenue to drop 5% to $1.76 billion, which sounds bad but is slightly ahead of expectations. What's even better is that full-year adjusted earnings are expected to be between $0.78 and $0.79, ahead of the $0.76 estimate. That's what had investors excited today.  

Now what: It's never good to see revenue decline, but it appears that the bottom line is still intact. Shares now trade at just nine times earnings, which is reasonable even with the decline in revenue. More detail will come out during the full earnings report on Feb. 12, which is when investors should look to see if revenue will reverse course in 2014, a shift that would make the stock very attractive.

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The article Why ACCO Brands Shares Popped Today originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. 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.

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