A Preview Of ACCO Brands's Earnings

ACCO Brands ACCO is preparing to release its quarterly earnings on Thursday, 2024-10-31. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect ACCO Brands to report an earnings per share (EPS) of $0.23.

Anticipation surrounds ACCO Brands's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Overview of Past Earnings

In the previous earnings release, the company beat EPS by $0.06, leading to a 6.63% drop in the share price the following trading session.

Here's a look at ACCO Brands's past performance and the resulting price change:

Analyst Insights on ACCO Brands

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding ACCO Brands.

Analysts have given ACCO Brands a total of 1 ratings, with the consensus rating being Outperform. The average one-year price target is $7.0, indicating a potential 43.74% upside.

Comparing Ratings Among Industry Peers

The below comparison of the analyst ratings and average 1-year price targets of NL Industries, Interface and Steelcase, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus among analysts is an Underperform trajectory for NL Industries, with an average 1-year price target of $6.0, indicating a potential 23.2% upside.
• The consensus among analysts is an Outperform trajectory for Interface, with an average 1-year price target of $22.0, indicating a potential 351.75% upside.
• Steelcase is maintaining an Outperform status according to analysts, with an average 1-year price target of $16.0, indicating a potential 228.54% upside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for NL Industries, Interface and Steelcase, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

ACCO Brands ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks at the top for Return on Equity.

Unveiling the Story Behind ACCO Brands

ACCO Brands Corp 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, janitorial supplies, and whiteboards; storage and organization products, sheet protectors, and indexes, and punching products; computer accessories and others used in schools, homes, and businesses. It offers its products under the AT-A-GLANCE, Five Star, GBC, Hilroy, Kensington, Quartet, Leitz, NOBO and other brands. The company markets and sells its products through various channels, including mass retailers; e-tailers; discount, and variety chains; and warehouse clubs. It generates maximum profit from ACCO Brands North America segment.

Unraveling the Financial Story of ACCO Brands

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: ACCO Brands's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -11.2%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: ACCO Brands's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -28.56%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): ACCO Brands's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -18.2%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): ACCO Brands's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -5.05%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: ACCO Brands's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.74, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for ACCO Brands visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.