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In a year marked by significant volatility, ACCO Brands (NYSE:ACCO) Corp’s stock has reached a 52-week low, trading at $4.29. According to InvestingPro analysis, the stock appears undervalued at current levels, with management actively buying back shares and offering a substantial 6.86% dividend yield. The office products manufacturer has faced a challenging market environment, reflected in a notable 1-year decline of 20.63% in its stock value. Investors are closely monitoring the company’s performance as it navigates through the headwinds of shifting consumer demand and operational pressures that have weighed heavily on its financials. While the company wasn’t profitable in the last twelve months, InvestingPro data shows analysts expect profitability this year, with multiple additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other US stocks.
In other recent news, ACCO Brands Corp. reported a 9.1% decline in net sales for the fiscal year 2024, ending December 31, 2024. The company posted fourth-quarter adjusted earnings per share of $0.39, missing analyst expectations of $0.41, with revenue at $448.1 million, below the projected $455.07 million and down 8.3% year-over-year. ACCO Brands’ guidance for 2025 also fell short of expectations, forecasting a first-quarter adjusted loss per share between -$0.03 and -$0.05, compared to analysts’ expectations of a $0.06 profit. For the full year 2025, the company projects adjusted EPS of $1.00 to $1.05, below the consensus estimate of $1.13.
S&P Global Ratings downgraded ACCO Brands’ credit rating to ’B+’ from ’BB-’, citing ongoing sales declines and challenging market conditions. Despite these setbacks, ACCO Brands is expanding its cost reduction program, targeting approximately $100 million in annualized savings by the end of 2026. The company realized about $25 million in cost savings in 2024, contributing to a free operating cash flow generation of about $130 million during the fiscal year. Additionally, ACCO Brands repurchased $15 million in shares and reduced its net debt by $94 million in 2024. The company maintained its quarterly dividend of $0.075 per share, highlighting its commitment to returning value to shareholders.
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