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Mar 31, 2023
Allegion Q1 2023 Earnings Report
Allegion reported strong Q1 2023 results, exceeding expectations with significant revenue growth and increased profitability, leading to an raised full-year outlook.
Key Takeaways
Allegion's Q1 2023 results showcased robust revenue growth, a notable increase in EPS, and a strengthened operating margin. The company's performance was driven by strong execution and resilience in the Americas non-residential business, leading to an increase in the full-year outlook.
Reported Q1 2023 revenue was $923.0 million, up 27.6% compared to the prior year.
Net earnings per share (EPS) reached $1.40, compared to $1.05 in 2022.
Adjusted EPS increased by 39.8% to $1.58, compared to $1.13 in 2022.
Operating margin was 18.5%, compared to 16.2% in 2022, with an adjusted operating margin of 20.8%.
Allegion
Allegion
Allegion Revenue by Segment
Revenue by Segment
Allegion Americas Revenue
CapyFin.comAllegion International Revenue
CapyFin.com Forward Guidance
The company is raising its full-year 2023 revenue growth outlook and expects it to be 11.5% to 13.5%, while also increasing its organic revenue growth outlook and expects it to be 5.5% to 7.5%. The company is revising its full-year 2023 reported EPS outlook and expects it to be in the $5.95 to $6.15 range, with adjusted EPS expected to be between $6.55 to $6.75.
Positive Outlook
- Revenue growth outlook raised to 11.5% - 13.5%.
- Organic revenue growth outlook increased to 5.5% - 7.5%.
- Full-year 2023 reported EPS outlook in the $5.95 to $6.15 range.
- Adjusted EPS expected to be between $6.55 to $6.75.
- Expectations for full-year 2023 available cash flow increased to approximately $480 to $500 million.
Challenges Ahead
- Approximately $0.40 per share for acquisition-related amortization.
- $0.20 per share for restructuring, M&A and amortization expense related to acquired backlog (approximately $9 million pre-tax).
- Approximately a $0.29 headwind for interest and other income.
- Full-year adjusted effective tax rate of approximately 15% to 15.5%.
- Average diluted share count for the full year of approximately 88.3 million shares.
Revenue & Expenses
Visualization of income flow from segment revenue to net income