Acme United Continues To Be On Track For Record Breaking Year
Acme United Corporation (US: ACU – $36.00) is a leading consumer products company with a focus on first aid and safety products, as well as cutting solutions, for commercial and industrial markets worldwide. The Company had a very good third quarter of 2021. For the quarter ended September 30, 2021, sales reached $47.9 million, compared to $43.3 million in the third quarter of 2020, an increase of 11%.
The Company’s strong performance was even more highlighted in its third quarter earnings. Net income for the third quarter of 2021 was $2,046,000 or $0.50 per diluted share compared to a net income of $1,579,000 or $0.46 per diluted share for the same period of 2020, an increase 30% in net income and 9% in earnings per share.
Especially, strong demand for its first aid and cutting products contributed to the third quarter success. Moreover, sales to office customers rebounded strongly, and e-commerce revenues were robust.
The Company gave no guidance, but its Chairman and CEO Walter C. Johnsen said, “We believe we are well-positioned to respond to customer needs in the coming quarters. We’re converging on another successful year and anticipate record sales and earnings in 2021. In addition, we are optimistic about 2022.”
Acme United’s share price is down by 25% since April of this year, but there is absolutely no reason for this. The Company is achieving strong growth quarter after quarter and year after year, and while competitors are cutting back on advertising, cutting back on new product development, and firing people, Acme is doing the exact opposite. It is putting more money into online advertising, it has intensified product development, and is adding staff.
We reiterate our buy recommendation for Acme United Corp. with a price target of $53.82, which is 50% above today’s stock price.
|Smallcaps.us Advice: Buy||Price Target: $36.38||Latest Company Report (pdf)|
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