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Jun 30, 2020
ACCO Brands Q2 2020 Earnings Report
Reported second quarter EPS of $0.06 versus $0.35 last year, and adjusted EPS of $0.12 versus $0.36 in 2019.
Key Takeaways
ACCO Brands' second quarter sales reached the upper end of guidance with sequential monthly improvement after April. Profitability and adjusted earnings per share exceeded expectations due to aggressive cost-saving actions. The balance sheet remains strong with good liquidity and no debt maturities until May 2024, with expectations to continue generating strong cash flow for the full year.
2Q EPS of $0.06 versus $0.35 in prior year
Adjusted 2Q EPS of $0.12 versus $0.36 in 2019
2Q net sales $367 million, down 29 percent
Solid back-to-school sell-in in North America
Forward Guidance
The outlook for the third quarter is a sales decline in a range of 15 percent to 20 percent, and adjusted earnings per share in a range of $0.13 to $0.19. The third quarter outlook includes an adverse foreign exchange impact of 1 percent to 2 percent on sales and ($0.01) impact on adjusted EPS.
Positive Outlook
- Drive back-to-school sellout in North America
- Reduce costs
- Strengthen position with growing channels
- Strengthen position with growing categories
- Financial strength and experienced management team
Challenges Ahead
- Limited visibility beyond the third quarter because of the uncertainties of the pandemic.
- Sales decline in a range of 15 percent to 20 percent
- Adjusted earnings per share in a range of $0.13 to $0.19
- Adverse foreign exchange impact of 1 percent to 2 percent on sales
Historical Earnings Impact
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Avg. Return Before/After Earnings
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