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Dec 31, 2020
Allegion Q4 2020 Earnings Report
Allegion reported mixed Q4 2020 results, with revenue up slightly but operating income down due to charges related to assets held for sale. However, adjusted EPS increased, driven by EMEA performance and cost mitigation actions.
Key Takeaways
Allegion's Q4 2020 revenue increased by 1.1% to $727.3 million, while net earnings were $93.3 million, or $1.01 per share. Adjusted EPS rose by 16.4% to $1.49. The company's performance was supported by growth in the Americas residential business and rebound in EMEA, but affected by COVID-19 impacts.
Fourth-quarter 2020 net earnings per share (EPS) of $1.01, compared with 2019 EPS of $0.86
Fourth-quarter 2020 adjusted EPS of $1.49, up 16.4 percent compared with 2019 adjusted EPS of $1.28
Fourth-quarter 2020 revenues of $727.3 million, up 1.1 percent compared to 2019 and down 0.6 percent on an organic basis
The continued rebound in EMEA, growth in the Americas residential business and the ongoing cost mitigation actions taken throughout the entire company helped Allegion deliver strong margin expansion in the fourth quarter
Revenue by Segment
Forward Guidance
The company expects full-year 2021 revenues to decrease 0.5 to 1.5 percent on a reported basis and decrease 1.5 to 2.5 percent organically, when compared with 2020, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements. Full-year 2021 reported EPS is expected to be in the range of $4.55 to $4.75, or $4.70 to $4.85 on an adjusted basis.
Positive Outlook
- The company expects organic growth in its Allegion Americas residential and Allegion International businesses
- Full-year 2021 reported EPS is expected to be in the range of $4.55 to $4.75, or $4.70 to $4.85 on an adjusted basis
- The outlook includes incremental investment of approximately $0.10 per share
- Assumes a full-year adjusted effective tax rate of approximately 12 percent
- The company is targeting full-year available cash flow of approximately $400 to $420 million
Challenges Ahead
- The company expects full-year 2021 revenues to decrease 0.5 to 1.5 percent on a reported basis and decrease 1.5 to 2.5 percent organically, when compared with 2020
- The company expects organic growth in its Allegion Americas residential and Allegion International businesses, offset by continued headwinds in Allegion Americas non-residential
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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