Loading...
•
Jun 30, 2024
Allegion Q2 2024 Earnings Report
Strong execution drove record Q2 revenue and adjusted EPS, with raised full-year outlook.
Key Takeaways
Allegion reported a strong second quarter with a 5.8% increase in revenue to $965.6 million and a net earnings per share of $1.77. The company raised its full-year guidance for reported revenue and adjusted EPS, affirming its available cash flow outlook.
Net earnings per share (EPS) of $1.77, up 9.9% compared with $1.61; Adjusted EPS of $1.96, up 11.4% compared with $1.76.
Revenues of $965.6 million, up 5.8% on a reported basis and up 5.2% on an organic basis.
Operating margin of 21.6%, compared with 20.2%; Adjusted operating margin of 23.7%, up 150 basis points compared with 22.2%.
Raising full-year reported revenue growth to a range of 2.5% to 3.5%.
Allegion
Allegion
Allegion Revenue by Segment
Allegion Revenue by Geographic Location
Revenue by Segment
Allegion Americas Revenue
CapyFin.comAllegion International Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The company is raising its revenue growth for full-year 2024, which is expected to be 2.5% to 3.5%, and tightening its organic revenue growth to be 1.5% to 2.5%, excluding the impacts of acquisition, divestitures and foreign currency movements. The company is raising the outlook for full-year 2024 EPS and expects it to be in the range of $6.50 to $6.65, or $7.15 to $7.30 on an adjusted basis. The company affirms expected full-year available cash flow of approximately $540 to $570 million.
Positive Outlook
- Raising full-year reported revenue growth to a range of 2.5% to 3.5%.
- Tightening its organic revenue growth to be 1.5% to 2.5%, excluding the impacts of acquisition, divestitures and foreign currency movements.
- Raising the outlook for full-year 2024 EPS and expects it to be in the range of $6.50 to $6.65, or $7.15 to $7.30 on an adjusted basis.
- The outlook assumes a headwind of approximately $0.37 based on a full-year adjusted effective tax rate of 18.0% to 19.0%, inclusive of the estimated impacts of global minimum tax.
- The company affirms expected 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 18.0% to 19.0%, inclusive of the estimated impacts of global minimum tax.
- Adjustments to 2024 EPS include estimated impacts of approximately $0.52 per share for acquisition-related amortization, as well as $0.13 per share for M&A, restructuring and other.
- The outlook assumes an average diluted share count for the full year of approximately 87.7 million shares.
- Year-to-date available cash flow for 2024 was $176.0 million, a decrease of $14.1 million versus the prior-year period.
- The company’s effective tax rate for second-quarter 2024 was 17.8%, compared with 12.6%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income