ACCO Brands (ACCO) Stock Forecast & Price Target

ACCO Brands Corp has demonstrated a positive financial trajectory, with Q3/24 gross margin improving by 20 basis points year-over-year to 32.5%, and a year-to-date gross margin expansion of 100 basis points, attributed to moderating input costs and cost-reduction measures. The company’s adjusted operating margin for Q3/24 also saw an increase of 30 basis points year-over-year, reaching 10.6%, further supported by efficient management of selling, general, and administrative expenses. Additionally, ACCO Brands is projected to generate approximately $130 million in free cash flow for 2024, an increase from $117.5 million in 2023, highlighting the company’s strong market position and resilience in the consumer product sector.

ACCO Brands Corp reported a decline in Q4/24 sales of 8.3% year-over-year, significantly underperforming both internal estimates and market consensus, contributing to a negative outlook for the company's financial performance. The company is projecting a continuous decrease in sales for 2024, with expected declines ranging from 5% to 8% year-over-year, along with guidance for a potential adjusted net loss per share during Q1/25. Furthermore, despite some operational efficiencies leading to moderated EPS decline rates, overall softness in global demand and economic uncertainties, particularly in Brazil, undermine ACCO's revenue prospects and future profitability.