ACCO Brands Corporation (NYSE:ACCO) is scheduled to report Q3 earnings results after markets close for trading on October 27, 2020.
The company is expected to report earnings of $0.15/share on revenue of $410.3 million. The consensus earnings per share (EPS) of $0.15/share is based on a poll of 5 analysts and represents a decline in eps of −53.1% over the same quarter last year, when the company reported earnings of $0.32/share.
The revenue forecast of $410.3 million based on a poll of 6 analysts implies a year-over-year (YoY) decline in revenue of −18.9%. Last year the company reported $505.7 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, and missed expectations 4 quarters.
What are your expectations from ACCO Brands Corporation for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 1.9%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|July 28, 2020||$6.86||$6.99||1.9%||Increase|
|May 4, 2020||$7.11||$6.30||−11.4%||Decline|
|February 11, 2020||$9.11||$10.31||13.2%||Increase|
|October 29, 2019||$10.05||$8.92||−11.2%||Decline|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.96, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.96 implies a 0.2% chance of earnings manipulation.
Fundamentals And Technical Analysis
ACCO Brands Corporation is currently trading at $6.40/share, down −0.6% for the day. The company is trading at approximately 56.2% of its 52-week high of $11.38/share. The company’s stock price is down −8.4% since the last earnings report and down −4.2% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 49.32 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 7.12 and a forward P/E multiple of 8.82.
ACCO Brands Corporation’s current share price also implies a price-to-book (P/B) multiple of 0.85. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$6.40|
|P/E Ratio (Fwd)||8.8x|
|Total Debt / Total Capital||64.8%|
|Levered Free Cash Flow||$225.1 million|
|EV / EBITDA||6.7x|
ACCO Brands Corporation is a small-cap stock with a market capitalization of $604.6 million and a total enterprise value of $1.597 billion. The company operates in the Industrials sector and the Commercial Services & Supplies industry.
ACCO Brands Corporation designs, manufactures, and markets consumer and business products. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers school notebooks, calendars, planners, dry erase boards, and janitorial supplies; storage and organization products, such as three-ring and lever-arch binders, sheet protectors, and indexes; laminating, binding, and shredding machines; writing instruments; stapling and punching products; do-it-yourself tools; and computer accessories and others used in schools, homes, and businesses. It offers its products primarily under the AT-A-GLANCE, Barrilito, Derwent, Esselte, Five Star, Foroni, GBC, Hilroy, Kensington, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Spirax, and Wilson Jones brand names. The company markets and sells its products through various channels, including mass retailers; e-tailers; discount, drug/grocery, and variety chains; warehouse clubs; hardware and specialty stores; independent office product dealers; office superstores; wholesalers; and contract stationers, as well as sells products directly to commercial and consumer end-users through its e-commerce platform and direct sales organization. ACCO Brands Corporation was founded in 1893 and is headquartered in Lake Zurich, Illinois.