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Mar 31, 2020
Allegion Q1 2020 Earnings Report
Allegion experienced solid underlying fundamentals despite the impact of COVID-19, with organic growth and adjusted margin expansion in the first quarter.
Key Takeaways
Allegion reported a 3% increase in net revenues, reaching $674.7 million. Net income was $0.4 million, or $0.00 per share. Adjusted EPS was $1.04, up 18.2% compared to the previous year. The company's performance was led by strong growth in the Americas region, offset by weakness in EMEIA and Asia Pacific due to COVID-19 impacts and market conditions.
First-quarter net revenues increased by 3% to $674.7 million, with a 4.3% increase on an organic basis.
Adjusted EPS rose by 18.2% to $1.04, compared to $0.88 in the first quarter of 2019.
Operating margin was 4.3%, while adjusted operating margin reached 19%, a 190 basis points increase from the previous year.
The company withdrew its 2020 outlook due to the uncertainty caused by the COVID-19 pandemic.
Revenue by Segment
Forward Guidance
Allegion previously withdrew its 2020 outlook for revenue and EPS due to the uncertainty surrounding the COVID-19 pandemic. The company expects near-term negative financial impacts to revenue, income, and cash flow.
Positive Outlook
- Committed to the well-being of employees, customers, and communities.
- Focused on business health and essential critical infrastructure.
- Taking proactive measures such as reductions in discretionary spending.
- Eliminating non-essential investment spend.
- Implementing a hiring freeze.
Challenges Ahead
- COVID-19 pandemic will cause near-term negative financial impacts to revenue.
- COVID-19 pandemic will cause near-term negative financial impacts to income.
- COVID-19 pandemic will cause near-term negative financial impacts to cash flow.
- Uncertainty surrounding the COVID-19 pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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