ACCO Brands has decided not to offer a full-year outlook for 2025 sales, adjusted earnings per share (EPS), and free cash flow due to the uncertainties surrounding global trade dynamics, which limit visibility beyond the second quarter. Despite these challenges, the company remains focused on its long-term strategy aimed at enhancing revenue trends and optimizing its cost structure. ACCO is confident in its strategic initiatives and believes strongly in the potential of its leading brands for future growth.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for ACCO Brands Corp (ACCO, Financial) is $10.67 with a high estimate of $13.00 and a low estimate of $7.00. The average target implies an
upside of 176.34%
from the current price of $3.86. More detailed estimate data can be found on the ACCO Brands Corp (ACCO) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, ACCO Brands Corp’s (ACCO, Financial) average brokerage recommendation is currently 1.5, indicating “Buy” status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ACCO Brands Corp (ACCO, Financial) in one year is $4.74, suggesting a
upside
of 22.8% from the current price of $3.86. GF Value is GuruFocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. More detailed data can be found on the ACCO Brands Corp (ACCO) Summary page.
ACCO Key Business Developments
Release Date: February 21, 2025
- Free Cash Flow: $132 million for the year.
- Net Debt Reduction: $94 million decrease for the year.
- Cost Savings: $25 million realized from a $60 million multi-year cost reduction program.
- Gross Margin Expansion: 70 basis points increase versus the prior year.
- SG&A Expense Reduction: $30 million lower than the previous year.
- Fourth Quarter Sales Decline: 8% reported sales decrease; 6% decline excluding foreign exchange.
- Fourth Quarter Gross Profit: $156 million, a 9% decrease compared to the prior year.
- Fourth Quarter Adjusted Operating Income: $64 million, down 6% with a 30 basis points margin improvement.
- Americas Segment Sales Decline: 12% decrease; 8% decline excluding foreign exchange.
- International Segment Sales Decline: 3% comparable sales decline.
- Full Year 2025 Sales Outlook: Expected decline of 1% to 5%.
- Full Year 2025 Adjusted EPS Outlook: $1 to $1.05 per share.
- Full Year 2025 Free Cash Flow Outlook: $105 million to $115 million.
- First Quarter 2025 Sales Outlook: Expected decline of 5% to 8%.
- First Quarter 2025 Loss Per Share Outlook: Expected loss of $0.03 to $0.05 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ACCO Brands Corp (ACCO, Financial) delivered free cash flow of $132 million for the year, aligning with their outlook.
- The company successfully reduced inventory levels by 17% and collected significant receivables in Brazil, improving working capital management.
- Net debt was reduced by $94 million, enhancing the company’s financial position.
- ACCO Brands Corp (ACCO) expanded its capital allocation program to include share repurchases while maintaining dividend support and debt repayment.
- The company implemented a $60 million multi-year cost reduction program, realizing $25 million in savings and improving operating margins.
Negative Points
- ACCO Brands Corp (ACCO) faced greater than expected foreign currency headwinds, impacting sales and EPS.
- The demand environment remained soft, with discretionary spending by consumers and businesses constrained.
- Reported sales in the fourth quarter decreased by 8%, with comparable sales down 6% due to lower volumes globally.
- The company anticipates continued headwinds and uncertainties in 2025, including potential tariffs and a strong US dollar.
- Sales in the Americas segment declined 12%, with foreign exchange having a larger negative impact than expected.
