LAKE ZURICH, Ill. - ACCO Brands Corporation (NYSE: NYSE:ACCO), a leading global manufacturer of office products, reported fourth-quarter earnings that surpassed Wall Street's expectations. The company announced adjusted earnings per share (EPS) of $0.39, which was $0.06 higher than the analyst consensus of $0.33. Revenue for the quarter also exceeded estimates, coming in at $488.6 million compared to the expected $476.38 million.
Despite the positive performance in the fourth quarter, ACCO Brands provided guidance for the fiscal year 2024 that was less optimistic. The company anticipates a decrease in reported sales ranging from 2.0% to 5.0%, reflecting the uncertain demand environment for its product categories. Adjusted EPS for the full year is projected to be between $1.07 and $1.11, below the analyst consensus of $1.20. The company also expects free cash flow to grow to at least $120 million and aims to end the year with a consolidated leverage ratio of approximately 3.0x to 3.2x.
For the first quarter of 2024, ACCO Brands expects reported sales to decline by 6.5% to 8.0%, with adjusted EPS in the range of $0.01 to $0.04. The company noted that sales could fluctuate between the first and second quarters due to the timing of back-to-school shipments in North America.
ACCO Brands' President and Chief Executive Officer, Tom Tedford, commented on the results, stating, "Our fourth quarter financial performance, including our reported net sales and adjusted EPS and free cash flow, was better than expected." He attributed the company's success to the execution of their 2023 priorities and restructuring plans, which led to significant gross margin expansion and a reduction in the consolidated net leverage ratio to 3.4x at the end of 2023.
The company's stock movement following the earnings release was not provided, which would have indicated the market's immediate reaction to the earnings news and guidance. However, the tone of the article suggests that while the fourth quarter showed strength, the outlook for 2024 is cautious due to the challenging demand environment.
InvestingPro Insights
Following the recent earnings report from ACCO Brands Corporation (NYSE: ACCO), which delivered a mix of surpassing fourth-quarter expectations and a cautious outlook for 2024, investors may be seeking deeper insights into the company's financial health and market performance. Here are some key metrics and tips from InvestingPro that could provide a clearer picture:
InvestingPro Data reveals a market capitalization of $610.37 million and a price-to-earnings (P/E) ratio of 10.82, suggesting a potentially undervalued stock given the market average. Moreover, ACCO's strong return over the last three months, with a price total return of 22.2%, highlights recent investor confidence. The company's dividend yield stands at an attractive 4.66%, which could appeal to income-focused investors.
Two InvestingPro Tips worth noting are the company's high shareholder yield and the expectation of net income growth this year. These factors could signal a robust financial position and the potential for future appreciation. Additionally, ACCO's valuation implies a strong free cash flow yield, aligning with the company's guidance on expected growth in free cash flow.
For investors intrigued by these insights, there are over ten additional InvestingPro Tips available at https://www.investing.com/pro/ACCO, which delve into aspects such as earnings revisions, stock price volatility, and liquidity. To access these valuable tips and comprehensive metrics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.