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Sep 30, 2021
Allegion Q3 2021 Earnings Report
Allegion's financial performance decreased due to supply chain constraints and electronics and other parts shortages.
Key Takeaways
Allegion reported a decrease in third-quarter 2021 revenues and adjusted EPS, driven by supply chain constraints, while reaffirming its full-year outlook. Net revenues were $717 million, a 1.6% decrease, and adjusted EPS was $1.56, a 6.6% decrease compared to the prior year.
Third-quarter 2021 net earnings per share (EPS) of $1.59, compared with 2020 EPS of $1.58.
Third-quarter 2021 adjusted EPS of $1.56, down 6.6 percent compared with 2020 adjusted EPS of $1.67.
Third-quarter 2021 revenues of $717 million, down 1.6 percent on both a reported and organic basis.
Third-quarter 2021 operating margin of 19.3 percent, compared with 2020 operating margin of 22 percent; Adjusted operating margin of 20 percent, down 330 basis points compared with 2020 adjusted operating margin of 23.3 percent.
Allegion
Allegion
Allegion Revenue by Segment
Revenue by Segment
Allegion Americas Revenue
CapyFin.comAllegion International Revenue
CapyFin.com Forward Guidance
The company is reaffirming its updated full-year 2021 revenue, EPS and available cash flow outlooks from the pre-release of Oct. 1, 2021.
Positive Outlook
- The company expects reported revenue growth of 4 to 4.5 percent
- The company expects organic revenue growth of 3 to 3.5 percent, when compared with 2020, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements.
- The company expects full-year 2021 reported EPS to be in the $4.95 to $5.05 range
- Adjusted EPS coming in between $5.00 to $5.10.
- The company expects full-year 2021 available cash flow of approximately $460 to $480 million.
Challenges Ahead
- Adjustments to 2021 EPS of $0.05 per share include expected charges for restructuring and acquisition and integration expenses
- The outlook includes incremental investment of approximately $0.15 to $0.20 per share
- Assumes a full-year adjusted effective tax rate of approximately 9 percent
- Assumes an average diluted share count for the full year of approximately 90.5 million shares.
- Supply chain, labor and electronic component challenges are unprecedented.
Revenue & Expenses
Visualization of income flow from segment revenue to net income