ACCO Earnings Prediction
The chart below shows how ACCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ACCO sees a -0.19% change in stock price 10 days leading up to the earnings, and a +0.67% change 10 days following the report. On the earnings day itself, the stock moves by +0.46%. This data can give you a slight idea of what to expect for the next quarter's release.
ACCO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
448.10M
-8.29%
6.46%
Gross Margin
32.14%
-1.41%
8.03%
Operating Margin
11.76%
-0.25%
50.00%
Net Margin
4.60%
137.83%
108.14%
EPS
0.22
135.48%
120.00%
No Data Available
ACCO Earnings Analysis
ACCO Brands Corp Corporation (ACCO.N) Earnings Conference Call
Positive
Sales and EPS Performance: Full-year sales and adjusted EPS were in line with the company's outlook, despite foreign currency headwinds.
Strong Cash Management: Free cash flow for the year was $132 million, reflecting strong cash management and cost actions.
Debt Reduction Impact: Net debt decreased by $94 million, improving the company's financial position and allowing for share repurchases and continued dividend support.
Cost Reduction Initiative: The company implemented a $60 million multiyear cost reduction program, realizing approximately $25 million in savings during the year.
Gross Margin Improvement: Gross margins expanded by 70 basis points compared to the prior year, indicating improved operating margins.
Cost Management Success: SG&A costs were nearly $30 million lower than the previous year due to effective cost management.
Cost Savings Initiative: The company is targeting $100 million in total savings by the end of 2026, expanding its cost savings program by $40 million.
Expansion into Adjacent Categories: ACCO Brands successfully entered adjacent categories such as ergonomics and plans to continue this progress.
Market Share Stability: The company maintained strong category shares, with many brands either maintaining or growing their market share.
Product Innovation Strategy: ACCO Brands is focused on innovation and new product development, with several exciting launches planned for 2025.
Negative
Sales Decline Analysis: Reported sales in the fourth quarter decreased 8%, with comparable sales down 6% versus the prior year, indicating a significant decline in demand.
Soft Demand Environment: The overall demand environment remained soft, with discretionary spending by both consumers and businesses constrained, leading to lower sales volumes globally.
Americas Sales Decline: In the Americas segment, sales declined 12%, with foreign exchange having a larger negative impact than previously expected due to the strengthening of the U.S. dollar.
Profitability Challenges: The exit of lower-margin business accounted for about 2% of the decline in the quarter, indicating challenges in maintaining profitability.
Sales Decline in Brazil: In Brazil, there were lower sales for learning and creative products, contributing to the overall sales decline.
Restructuring Charges Increase: The fourth quarter recorded additional restructuring charges of $11 million as the company expanded the scope of its cost savings program, reflecting ongoing operational challenges.
Challenging Revenue Outlook: For the full year 2025, the company expects comparable sales to decline 1% to 5%, indicating a challenging outlook for revenue growth.
Sales Forecast Decline: The first quarter of 2025 is forecasted to see comparable sales down 5% to 8%, with adverse foreign exchange being a significant headwind.
Projected Loss Per Share: The anticipated loss per share for the first quarter is projected to be between $0.03 to $0.05, highlighting expected financial difficulties in the near term.
ACCO FAQs
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ACCO Earning Call Sentiment
ACCO Brands Corporation (NYSE:ACCO) Q4 2024 Earnings Call Transcript
ACCO.N
-4.03%Positive
The earnings call reveals mixed signals: while there are positive aspects like cost management and improved leverage, sales are expected to decline, and there are concerns about discretionary spending and inventory management. The Q&A section highlights management's reluctance to provide clear guidance on M&A and leverage, adding uncertainty. Overall, the mixed financial performance and cautious outlook suggest a neutral stock price movement.
