Westcott scissors maker Acme United Q3 net sales rise 18% on broad-based growth
Overview
Safety solutions supplier's Q3 net sales rose 18% yr/yr, driven by broad-based growth
Q3 diluted EPS rose 74% yr/yr to $0.80
Quarter benefited from $4 mln tariff refund, partly offset by facility closure costs
Outlook
Company expects My Medic to generate most profitability in Q4 due to seasonality
Company says transportation and raw material costs are rising, offset by operational efficiencies
Company expects over $1.0 mln in annual savings from DMT plant closure in 2027
Result Drivers
BROAD-BASED SALES GROWTH - Co said all business units and international markets contributed to sales growth, with strong back-to-school sales
TARIFF REFUND - Co recognized $4 mln tariff refund in Q3, reducing cost of goods sold
FACILITY CLOSURE COSTS - Co incurred $1.8 mln in costs related to DMT facility closure and production shift to Asia
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $58.01 mln | $56.39 mln (2 Analysts) |
Q3 EPS | $0.80 | ||
Q3 Net Income | $3.44 mln | ||
Q3 Basic EPS | $0.88 | ||
Q3 Gross Profit | $26.30 mln | ||
Q3 Operating Income | $4.46 mln | ||
Q3 Pretax Profit | $3.86 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for Acme United Corp is $63.00, about 0.9% below its October 26 closing price of $63.58
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 26 three months ago
Reuters Recommended Reads
Oct 26 - Dorman Products Q3 sales slightly miss estimates on tariff pricing impact
Oct 26 - Simpson Manufacturing Q3 sales beat estimates, aided by pricing actions
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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.)