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LAKE ZURICH, Illinois - ACCO Brands Corporation (NYSE:ACCO) saw its shares tumble 9.5% after the office and school supplies manufacturer reported fourth-quarter earnings that fell short of analyst expectations and provided disappointing guidance for the upcoming year.
The company posted adjusted earnings per share of $0.39 for the fourth quarter, missing the consensus estimate of $0.41. Revenue came in at $448.1 million, below the expected $455.07 million and down 8.3% YoY.
ACCO Brands’ outlook for 2025 also disappointed investors. The company forecasts first-quarter adjusted loss per share between -$0.03 and -$0.05, compared to analysts’ expectations of $0.06 profit. For the full year 2025, ACCO projects adjusted EPS of $1.00 to $1.05, below the consensus of $1.13.
Tom Tedford, President and CEO of ACCO Brands, commented on the results: "Fourth quarter sales and EPS were in line with our outlook, excluding the impact of greater foreign currency headwinds. During the year, we successfully executed on our key priorities and realized approximately $25 million in cost savings."
The company cited softer global demand for certain office-related products and lower demand for back-to-school items in Brazil as reasons for the revenue decline. However, ACCO noted growth in technology accessories categories partially offset these declines.
ACCO Brands expanded its multi-year cost reduction program, now targeting approximately $100 million in annualized savings by the end of 2026. The company also repurchased $15 million in shares and reduced its net debt by $94 million in 2024.
Despite the challenging quarter, ACCO Brands maintained its quarterly dividend of $0.075 per share, payable on March 26, 2025, to stockholders of record as of March 14, 2025.
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