ACCO - ACCO Brands (ACCO) - Sales and Profits Exceed Management Expectations For 1Q22

1Q22 Operating Results. ACCO reported Q22 revenue of $441.6 million, up 7.6% year-over-year and up 11.2% on a comparable basis, with all segments posting growth. We had forecast $420 million. Adjusted EPS was $0.11, compared to $0.10 last year. We had forecast adjusted EPS of $0.09.Growth Across All Segments. ACCO experienced meaningful comparable sales growth across all segments. Both reported and comparable sales were driven by higher sales prices, a positive 6.4% impact, and higher volumes, up 4.7%. ACCO saw strong demand for school products, computer accessories, and business products. Adverse foreign exchange reduced net sales by $14.9 million, or 3.6%.Segment Results. North America sales were up 10.4% to $208.5 million, while adjusted operating income rose 76.7% to $19.8 million. EMEA revenue rose 7.4% to $168.5 million on a comp basis, but fell 0.5% on a reported basis. Segment adjusted operating income decreased to $9.1 million from $21.2 million, as price increases did not fully offset inflation pressures. International revenue rose 18.8% to $77 million and were up 22.7% on a comp basis, as Brazil and Mexico rebounded. International adjusted operating income doubled to $6.2 million.Guidance Raised. On the back of the solid 1Q22 results and ongoing momentum, management adjusted its full year forecast, with growth tempered by a more negative projected foreign exchange impact. Comparable sales growth is now projected at 3.5%-8.5%, up from a previous 2.0%-7.0%, The expected foreign exchange impact increases from a negative 1.0% to a negative 2.5%. Comp adjusted EPS increases to $1.52-$1.62, up from $1.50-$1.60, while adjusted EPS remains at $1.48-$1.58.Conference Call. Management will host a call to discuss results this morning at 8:30am est. Dial-in is (844) 200-6205. We will update our models and provide additional commentary following the call. Read More >>