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Sep 30, 2021
ACCO Brands Q3 2021 Earnings Report
ACCO Brands experienced strong sales and profit increases.
Key Takeaways
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
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.
Positive Outlook
- 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).
Challenges Ahead
- 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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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