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Allegion
🇮🇪 NYSE:ALLE
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•
Mar 31, 2024

Allegion Q1 2024 Earnings Report

Allegion's Q1 performance set a solid foundation for the year, with strong execution and expanded margins.

Key Takeaways

Allegion reported a decrease in revenue by 3.2% to $893.9 million, with a net income of $123.8 million, or $1.41 per share. Adjusted EPS was $1.55, a decrease of 1.9%. The company affirms its full-year outlook.

Net earnings per share (EPS) of $1.41, up 0.7% compared with $1.40; Adjusted EPS of $1.55, down 1.9% compared with $1.58.

Revenues of $893.9 million, down 3.2% on a reported basis and down 3.6% on an organic basis.

Operating margin of 19.3%, compared with 18.5%; Adjusted operating margin of 21.2%, up 40 basis points compared with 20.8%.

Affirming full-year reported revenue growth, organic revenue growth, reported EPS, adjusted EPS and available cash flow.

Total Revenue
$894M
Previous year: $923M
-3.2%
EPS
$1.55
Previous year: $1.58
-1.9%
Operating Margin
19.3%
Previous year: 18.5%
+4.3%
Adj. Operating Margin
21.2%
Previous year: 20.8%
+1.9%
Interest Expense
$22.9M
Previous year: $23.6M
-3.0%
Gross Profit
$391M
Previous year: $391M
+0.1%
Cash and Equivalents
$392M
Previous year: $293M
+33.8%
Free Cash Flow
$23.9M
Total Assets
$4.29B
Previous year: $4.12B
+3.9%

Allegion

Allegion

Allegion Revenue by Segment

Allegion Revenue by Geographic Location

Forward Guidance

The company affirms its previously disclosed full-year 2024 outlook. Full-year 2024 revenues are expected to increase 1.5% to 3.5% on a reported basis and increase 1% to 3% organically. Full-year 2024 reported EPS is expected to be in the range of $6.45 to $6.60, or $7.00 to $7.15 on an adjusted basis. The company expects full-year available cash flow of approximately $540 to $570 million.

Positive Outlook

  • Full-year 2024 revenues are expected to increase 1.5% to 3.5% on a reported basis.
  • Full-year 2024 revenues are expected to increase 1% to 3% organically.
  • Full-year 2024 reported EPS is expected to be in the range of $6.45 to $6.60.
  • Full-year 2024 adjusted EPS is expected to be in the range of $7.00 to $7.15.
  • The company expects full-year available cash flow of approximately $540 to $570 million.

Challenges Ahead

  • The outlook assumes a headwind of approximately $0.37 based on a full-year adjusted effective tax rate of 18% to 19%, inclusive of the estimated impacts of global minimum tax.
  • Adjustments to 2024 EPS include estimated impacts of approximately $0.46 per share for acquisition-related amortization.
  • Adjustments to 2024 EPS include estimated impacts of approximately $0.09 per share for restructuring and M&A.
  • The outlook assumes an average diluted share count for the full year of approximately 88 million shares.
  • Year-to-date available cash flow for 2024 was $23.9 million, a decrease of $22.8 million versus the prior-year period.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Allegion