ACCO Brands Corp. traded higher after the company reported both record annual sales and adjusted earnings per share.
Designer, manufacturer and marketer of branded academic, consumer and business products firm ACCO Brands Corp. (ACCO:NYSE) yesterday announced its fourth quarter and full year results for the period ended December 31, 2019.
For FY/19 the company reported that it achieved record net sales of $1.96 billion, up 1% percent compared to $1.94 billion in FY/18. The firm indicated that FY/19 earnings per share (EPS) were $1.06, versus $1.00 EPS in FY/18 and that it earned a record adjusted EPS of $1.20, versus $1.14 adjusted EPS over the same corresponding period.
For Q4/19 the firm advised that net sales increased by 1.5% to $537.4 million, compared to $529.3 million in Q4/18. The company stated that Q4/19 EPS improved to $0.44 versus $0.34 in Q4/18, and adjusted EPS increased to $0.46 compared to $0.41 in Q4/18.
ACCO advised that its outlook for 2020 is for "adjusted EPS of $1.20 to $1.30." The company added that the 2020 outlook includes an adverse foreign exchange impact of 1% on sales and $0.03 on adjusted EPS.
Boris Elisman, chairman, president and CEO of ACCO Brands, commented, "I am very pleased with our results for the fourth quarter and full year and want to congratulate ACCO Brands employees for delivering record annual sales and adjusted EPS, and the second highest free cash flow ever...Our company enters a new decade as a growing, well-diversified, branded consumer, school, and office products business with a track record of product innovation, strong in-market execution, and efficient operations. In 2020, we are expecting another year of strong progress against our strategic imperatives."
The firm reported that ACCO Brands North America sales in FY/19 increased 2.8% to $966.8 million driven by higher pricing that offset the impact of inflation and tariffs, as well as a strong back-to-school season and that ACCO Brands International sales rose by 6.1% to $419.6 million.
ACCO Brands is headquartered in Lake Zurich, Ill., and states that "it is one of the world's largest designers, marketers and manufacturers of branded academic, consumer and business products." Some of the firms more widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Mead®, Rexel®, Swingline®, Tilibra® and many others. The company sells its products in more than 100 countries worldwide.
ACCO Brands has a market capitalization of around $900 million with approximately 97 million shares outstanding. ACCO shares opened higher today at $9.67 (+$0.51, +5.57%) over yesterday's $9.16 closing price and then climbed to a new 52-week high price this morning of $11.3799. The stock has traded today between $9.67 and $11.3799 per share and is currently trading at $10.49 (+$1.33, +14.52%).
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