ACCO Brands Q3 sales hit by lower demand, tariff refund lifts profit
Overview
Branded tech peripherals firm's Q3 net sales fell 0.9% and slightly missed analyst expectations
Adjusted EPS for Q3 rose, benefiting from tariff refunds
Company closed Trust acquisition and raised full-year outlook to reflect tariff refunds and deal
Outlook
Company expects 2026 reported sales to rise 4.0% to 6.0%, including Trust acquisition
Company sees 2026 full-year adjusted EPS at $0.98 to $1.02, including tariff refund
Company expects 2026 free cash flow of about $100 mln and year-end leverage ratio of 3.5x
Result Drivers
TARIFF REFUNDS - Net tariff refunds boosted operating income and adjusted EPS by $15.1 mln in Q3
TECH PERIPHERALS SOFTNESS - Co said lower demand for technology peripherals contributed to a 6.2% decline in comparable sales
COST SAVINGS - Cost savings helped lift adjusted operating income, partly offset by lower product mix
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Sales | Slight Miss* | $380.30 mln | $383.70 mln (3 Analysts) |
Q3 Net Income | $11.50 mln | ||
Q3 Gross Profit | $135.80 mln | ||
Q3 Operating Income | $30.30 mln | ||
Q3 Pretax Profit | $16.60 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support supplies peer group is "buy."
Wall Street's median 12-month price target for ACCO Brands Corp is $9.00, about 105.5% above its October 28 closing price of $4.38
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago
Reuters Recommended Reads
Oct 26 - Dorman Products Q3 sales slightly miss estimates on tariff pricing impact
Oct 27 - Sherwin-Williams Q3 sales beat estimates on higher pricing
Oct 28 - TE Connectivity Q4 sales beats on industrial, transportation segments growth
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)