1Q21 Revenue. ACCO's 1Q21 results were driven by the PowerA acquisition, along with EMEA. North American and International results continue to lag due to COVID-related impacts. Net sales increased 6.9% to $410.5 million from $384.1 million in 2020 due to the inclusion of $62.7 million from the PowerA acquisition. Comparable sales were $332.1 million, down 13.5%. We had forecast revenue of $390 million.1Q21 Earnings. Earnings were impacted by a number of items, both operationally related and non-operationally related. ACCO reported an operating loss of $1.1 million, compared with an operating profit of $17.4 million in 2020. Adjusted operating profit came in at $24.6 million compared to $26.4 million in 1Q20. The Company reported a net loss of $20.4 million, or $(0.21) per share, compared with net income of $8.0 million, or $0.08 per share, in 2020. Adjusted net income was $10.0 million, or $0.10 per share, compared with net income of $13.2 million, or $0.14 per share, in 2020. We had forecast adjusted EPS of $0.06.Business Segments. NA sales totaled $188.8 million, up 12.5% due to the PowerA acquisition, although comparable sales of $136.3 million decreased 18.8% due to lower demand related to COVID-19 impacts, especially in commercial office related products. EMEA had sales of $156.9 million, up 23.1%, primarily from favorable foreign exchange of $12.2 million and the PowerA acquisition, which added $8.6 million. Comparable sales were $136.1 million, up 6.8%. International segment revenues declined 27% to $64.8 million, with comparable sales down 32.7%.Earnings Call. Management will host a call to discuss results this morning at 8:30am est. Dial-in is (833) 476-0950. We will update our models and provide additional commentary following the call.Compelling Risk/Reward. We continue to believe ACCO shares present investors a compelling risk/reward opportunity. We are maintaining our Outperform rating and $10 12-month price target. Read More >>