Allegion Q4 2019 Earnings Report
Key Takeaways
Allegion reported Q4 2019 net revenues of $719.5 million and net earnings of $80.7 million, or $0.86 per share. Adjusted EPS was $1.28, up 4.9% compared to Q4 2018. The Americas region delivered strong organic growth, while EMEIA and Asia Pacific faced challenges.
Q4 2019 net revenues reached $719.5 million, a 2.4% increase year-over-year (3.5% organic growth).
Q4 2019 EPS was $0.86, with adjusted EPS at $1.28, a 4.9% increase year-over-year.
Operating income for Q4 2019 was $143.3 million, a 1.3% increase compared to 2018.
The Americas region showed strong organic growth, while EMEIA and Asia Pacific faced market challenges.
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Allegion Revenue by Segment
Forward Guidance
The company expects full-year 2020 revenues to increase 3 to 4 percent on a reported basis and 3.5 percent to 4.5 percent organically, when compared with 2019. Full-year 2020 reported EPS is expected to be in the range of $5.00 to $5.10, or $5.10 to $5.20 on an adjusted basis.
Positive Outlook
- Full-year 2020 revenues are expected to increase 3-4% on a reported basis.
- Organic revenue growth for full-year 2020 is projected at 3.5-4.5%.
- The Americas region is expected to lead revenue growth.
- Full-year 2020 reported EPS is projected between $5.00 and $5.10.
- Adjusted EPS for full-year 2020 is expected to be $5.10 to $5.20.
Challenges Ahead
- Outlook includes incremental investment of approximately $0.15 per share.
- Assumes a full-year adjusted effective tax rate of approximately 16.5 to 17 percent.
- Assumes an average diluted share count for the full year of approximately 93 million shares.
- Weak market conditions in Australia.
- Softened market conditions across China and Europe
Revenue & Expenses
Visualization of income flow from segment revenue to net income