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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.
Allegion
Allegion
Allegion Revenue by Segment
Revenue by Segment
Allegion Americas Revenue
CapyFin.comAllegion International Revenue
CapyFin.com 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.
- Impact on demand and the supply chain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income