Loading...
•
Mar 31, 2020
ACCO Brands Q1 2020 Earnings Report
Reported mixed results with North America sales growth offset by EMEA and International segment weakness, driven by COVID-19 impacts, while initiating cost reduction actions and amending bank covenant.
Key Takeaways
ACCO Brands reported a decrease in net sales by 2.5% to $384.1 million, impacted by adverse foreign exchange and COVID-19 related business closures, though North America sales increased. EPS was $0.08, and adjusted EPS was $0.07. The company initiated cost reduction actions and amended its bank covenant to increase financial flexibility.
1Q EPS of $0.08 versus $(0.01) in prior year
Adjusted 1Q EPS of $0.07 versus $0.08 in 2019
1Q net sales $384.1 million, down 3 percent
North America sales grew 5 percent
Forward Guidance
The company expects second quarter sales to decline between 25% and 40%, with adjusted earnings per share in the range of $0.07 to ($0.05). They anticipate generating over $100 million of free cash flow for the year.
Positive Outlook
- Back-to-school orders have remained solid
- Balance sheet remains strong
- Good liquidity
- No debt maturities until May 2024
- Expect to continue to generate strong cash flow for the full year
Challenges Ahead
- Facing an uncertain environment
- Limited visibility due to government and business actions
- Commercial orders are very soft
- Expect our second quarter sales and profits to be down significantly compared with last year
- Currently, we have very limited visibility beyond the second quarter because of the uncertainties of the pandemic
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...