NEW YORK (TheStreet) -- Shares of Acco Brands (ACCO) were soaring 19.65% to $10.90 on heavy trading volume late Monday afternoon after the company reported better-than-anticipated earnings for the 2016 third quarter and announced an acquisition.
Before today's opening bell, the Lake Zurich, IL-based maker of office supplies posted adjusted earnings of 29 cents per share, topping analysts' estimates by a penny. Revenue for the period was $431.3 million, while Wall Street was looking for $432.3 million.
For 2016, Acco Brands sees earnings per share between 84 cents and 86 cents, above analysts' expectations. Analysts are modeling earnings of 81 cents per share for the full year.
Additionally, the company today agreed to buy Esselte for $333 million in cash from private equity firm J.W. Childs. Esselte manufactures office supplies and consumer products.
More than 1.80 million of Acco Brands' shares changed hands so far today vs. its average 30-day volume of 516,537 shares.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on Acco Brands stock.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity.
The team believes its strengths outweigh the fact that the company shows weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
