3Q21 Operating Results. ACCO reported strong 3Q21 results, with organic sales growth across all segments. Revenue increased 18.6% to $526.7 million. Consensus was $532 million and we had forecast $525 million. Adjusted EPS was $0.33, compared to $0.25 last year. We had forecast adjusted EPS of $0.36 and consensus was $0.35. Adjusted EPS was negatively impacted $0.03 per share by higher taxes.Segments. N.A. sales were up 20.5%, with comp sales up 0.8%. PowerA, back-to-school, and commercial product sales all contributed. EMEA sales were up 18.1%, with comp sales up 10.3%. Higher demand and market share gains were the drivers. International sales were up 12.9% with comp sales up 4.7% due to higher demand and improved pricing. ACCO continues to raise prices to offset higher logistics and commodity prices.Cash Flow/Increased Dividend. ACCO generated $99 million of operating cash flow in the quarter and reduced debt by $117 million. Full year OCF should be north of $160 million, with FCF of at least $135 million. EBITDA is expected to be in the $285-$300 million range. The Board raised the quarterly dividend 15.4% to $0.075/sh, equivalent to $0.30/sh annually.Earnings 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.Maintain Outperform. We are maintaining our Outperform rating on ACCO shares and our 12-month price target of $12.00. At our $12.00 target, ACCO shares would trade at 8.8x our 2021 adjusted EPS estimate, 1.2x on an EV/Sales basis, and 7.9x on an EV/EBITDA estimate. And investors can enjoy a 3.4% dividend yield while waiting for a full return to normalcy to pan out. Read More >>