ACCO Brands Corporation (ACCO) Tops Q4 EPS by 4c

ACCO Brands Corporation (NYSE: ACCO) reported Q4 EPS of $0.32, $0.04 better than the analyst estimate of $0.28. Revenue for the quarter came in at $460.1 million versus the consensus estimate of $445.81 million.

GUIDANCE:

ACCO Brands Corporation sees Q1 2021 EPS of $0.00-$0.06.

• Beginning with the first quarter of 2021, the Company is changing the way it calculates and reports its adjusted non-GAAP results by excluding non-cash amortization of acquisition-related intangible assets. The Company has made several large acquisitions over the last few years, and has publicly committed to continue to transform its business through acquisitions in the future. As a result of its acquisition strategy, the Company has, and likely will continue to have in the foreseeable future, a large amount of acquisition-related amortization expense. The Company believes that this change will enhance the usefulness of its non-GAAP measures to its investors because it reflects the underlying operating results before amortization expense which is not associated with core operations, and facilitates meaningful period-to-period and peer comparisons. The Company has included restated reconciliations of its 2019 and 2020 non-GAAP results including this new adjustment in the "About Non-GAAP Financial Measures" section of this earnings release. The first quarter guidance for 2021 reflects this adjustment.
• "Historically, the first quarter has been our seasonally smallest quarter. Including PowerA, we believe our first quarter sales will be in range of flat to up 4 percent, and adjusted earnings per share will be in a range of zero to $0.06. Our outlook includes a favorable foreign exchange impact of 4 percent on sales and $0.02 on adjusted EPS, as well as $0.09 from the exclusion of intangible amortization. For the full year, we are confident in our ability to generate at least $135 million of free cash flow (at least $165 million in operating cash flow minus capital expenditures of approximately $30 million)," Elisman continued.
• "We continue to take the right actions to withstand the near-term economic and industry headwinds. We have made great strides in transforming our company into a more consumer- and technology-oriented business and strengthening our position in growing channels and categories. Our balance sheet remains solid, and we are confident in our ability to generate consistently strong free cash flow," Elisman concluded.

For earnings history and earnings-related data on ACCO Brands Corporation (ACCO) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Star Equity Holdings (STRR) Misses Q2 EPS by 8c
• SanDisk upgraded at JPMorgan after investor day; shares climb