NYSE$ACCO

ACCO Brands Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

ACCO Brands experienced strong sales and profit increases.

ACCO Brands reported a strong third quarter with net sales of $527 million, up 19 percent, and adjusted EPS of $0.33 versus $0.25 in 2020. The company is managing inflation and supply chain disruptions well and expanded gross margin in the quarter. They also raised the dividend by 15 percent.

  • Net sales were $527 million, up 19 percent; comparable sales up 4 percent, all segments up
  • EPS was $0.21 versus $0.20 in prior year; adjusted EPS was $0.33 versus $0.25 in 2020
  • Gross margin improved 120 bps
  • Generated 3Q operating cash flow of $99 million; reduced debt $117 million

Headline financials

Total Revenue

$527M

Previous: $444M+18.6%
EPS (adj)

$0.33

Previous: $0.19+73.7%
Gross margin

29.8%

No prior period
Income tax rate

33.1%

No prior period
Capital Expenditures

-$13.9M

Previous: -$11.8M-17.8%
Free Cash Flow

$6.3M

Previous: $7M-10.0%
Net Income

$20.2M

Previous: $18.8M+7.4%
Operating Income

$38.6M

Previous: $34.3M+12.5%
Gross Profit

$157M

Previous: $127M+23.7%
Cash & Equivalents

$58.1M

Previous: $85.8M-32.3%
Total Assets

$3.07B

Previous: $2.7B+14.0%
Stock-Based Comp

$3.2M

Previous: $1.8M+77.8%

Revenue & EPS history

ACCO Brands · Revenue · Quarterly

$527M

Q3 2021+18.6%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

ACCO Brands expects continued organic growth in the fourth quarter and has taken price increases to offset higher costs. They are reducing the top end of their sales outlook to reflect the impact of console availability on PowerA's sales and modifying their adjusted EPS outlook because of the higher full year tax rate.

Tailwinds

  • Sales are expected to be in a range of $2.0 billion to $2.04 billion.
  • PowerA contributing $240 million to $260 million.
  • Adjusted earnings per share are expected to be in a range of $1.30 to $1.40.
  • Adjusted effective tax rate of 31 percent.
  • The Company is confident in its ability to generate at least $135 million of free cash flow ($160 million in operating cash flow minus capital expenditures of approximately $25 million).

Headwinds

  • Reducing the top end of sales outlook to reflect the impact of console availability on PowerA's sales
  • Modifying adjusted EPS outlook because of the higher full year tax rate
  • Impact of console availability on PowerA's sales
  • Higher full year tax rate
  • Facing higher costs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+1.7%

Avg return

Earnings day

+0.2%

Avg return

5 days after

-0.4%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+26.2%

Q3 2016

Best reaction

-19.1%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+23.1%+25.5%+23.7%
Q4 2025-6.6%-13.6%-25.6%
Q3 2025-6.9%-4.6%-12.0%
Q1 2025-5.6%-8.0%-7.0%
Q4 2024-17.4%-17.6%-21.4%
Q3 2024+5.8%+16.9%+17.1%
Q2 2024-9.0%-9.0%+7.2%
Q1 2024+2.5%+3.2%+6.9%
Q4 2023-13.4%+8.0%-4.2%
Q3 2023-0.6%-5.5%+7.7%
Q2 2023-4.5%-7.3%-13.2%
Q1 2023+15.6%+16.3%+16.3%
Q4 2022-3.6%+1.4%-11.4%
Q3 2022+15.6%+19.7%+24.1%
Q2 2022-8.8%-2.2%-20.7%
Q1 2022-5.2%-6.4%-6.4%
Q4 2021+8.4%+10.2%+2.6%
Q3 2021-6.3%-6.7%-0.1%
Q2 2021+8.8%+8.1%+14.8%
Q1 2021+4.1%+0.4%+5.7%
Q4 2020-6.3%-7.6%-2.4%
Q3 2020-9.8%-15.4%+30.2%
Q2 2020+1.9%-5.0%-3.6%
Q1 2020-11.4%-10.3%-3.1%
Q4 2019+13.2%+7.1%-32.7%
Q3 2019-11.2%-8.6%-8.4%
Q2 2019+19.9%+18.1%+13.6%
Q1 2019-3.1%-4.5%-16.9%
Q4 2018-2.4%+0.5%-3.1%
Q3 2018-19.1%-10.2%-18.7%
Q2 2018-6.6%-5.9%-9.6%
Q1 2018-1.7%-2.1%+7.1%
Q4 2017+23.3%+22.4%+19.3%
Q3 2017+0.0%-1.5%+2.7%
Q2 2017-9.4%-6.4%-6.0%
Q1 2017-5.3%-11.6%-17.3%
Q4 2016+8.9%+7.8%+0.8%
Q3 2016+26.2%+21.8%+39.4%
Q2 2016-10.7%-11.2%-10.1%
Q1 2016+7.2%
Q4 2015+9.4%
Q3 2015-0.4%
Q2 2015+12.4%
Q1 2015-6.6%
Q4 2014-6.2%
Q3 2014+7.6%
Q2 2014+9.8%
Q1 2014+2.2%
Q4 2013+2.4%
Q3 2013-17.5%
Q2 2013-6.7%
Q1 2013-3.2%
Q4 2012-4.6%
Q3 2012+24.1%
Q2 2012-17.1%
Q1 2012+3.4%
Q1 2011+3.4%
Q4 2011+1.9%
Q4 2009+1.9%
Q3 2011+21.9%
Q3 2010+21.9%
Q4 2010+17.3%
Q2 2011+17.3%
Q2 2010+17.3%
Q1 2010-2.0%

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