•
Jun 30, 2022

Allegion Q2 2022 Earnings Report

Allegion reported an increase in revenue and adjusted EPS compared to the prior year. The company revises full-year outlook.

Key Takeaways

Allegion's second-quarter 2022 results showed revenue growth of 3.5% to $773.1 million and adjusted EPS increased 3.8% to $1.37. The company is revising its full-year outlook for revenue growth and EPS.

Second-quarter 2022 net earnings per share (EPS) of $1.30, compared with 2021 EPS of $1.31.

Second-quarter 2022 adjusted EPS of $1.37, up 3.8 percent compared with 2021 adjusted EPS of $1.32.

Second-quarter 2022 revenues of $773.1 million, up 3.5 percent on a reported basis and up 6.4 percent on an organic basis.

Second-quarter 2022 operating margin of 19 percent, compared with 2021 operating margin of 19.5 percent; Adjusted operating margin of 20 percent, up 40 basis points compared with 2021 adjusted operating margin of 19.6 percent.

Total Revenue
$773M
Previous year: $747M
+3.5%
EPS
$1.37
Previous year: $1.32
+3.8%
Operating Margin
19%
Previous year: 19.5%
-2.6%
Adjusted Operating Margin
20%
Previous year: 19.6%
+2.0%
Interest Expense
$17.2M
Previous year: $12.4M
+38.7%
Gross Profit
$315M
Previous year: $321M
-1.7%
Cash and Equivalents
$920M
Previous year: $460M
+99.8%
Total Assets
$3.65B
Previous year: $3.06B
+19.4%

Allegion

Allegion

Allegion Revenue by Segment

Forward Guidance

The company is raising its full-year 2022 revenue outlook and now expects reported revenue growth of 13 to 14 percent and organic revenue growth of 9 to 10 percent. The company is revising its full-year 2022 reported EPS to be in the $5.05 to $5.15 range, with adjusted EPS between $5.35 to $5.45.

Positive Outlook

  • Raising full-year 2022 revenue outlook to 13-14% growth.
  • Organic revenue growth expected to be 9-10%.
  • Increase in organic outlook driven by pricing actions.
  • Full-year 2022 reported EPS expected in the $5.05 to $5.15 range.
  • Adjusted EPS expected between $5.35 to $5.45.

Challenges Ahead

  • Includes an additional $0.09 per share pressure related to currency movements.
  • Includes approximately negative $0.10 adjusted EPS impact for the balance of the year related to the Access Technologies business and costs related to the acquisition.
  • Approximately $0.20 per share from operations.
  • Approximately negative $0.13 per share for intangible asset amortization.
  • Approximately negative $0.17 per share for interest expense.

Revenue & Expenses

Visualization of income flow from segment revenue to net income