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Dec 31, 2021
Allegion Q4 2021 Earnings Report
Allegion's Q4 2021 earnings were reported, showing a decrease in revenue and adjusted EPS compared to the previous year, while facing supply chain challenges and operational inefficiencies.
Key Takeaways
Allegion's Q4 2021 revenues were $709.2 million, a decrease of 2.5 percent compared to 2020. The net earnings per share (EPS) was $1.26, while the adjusted EPS was $1.11, down 25.5 percent compared to 2020. The company is introducing a positive 2022 outlook, expecting strong end-market demand and a return to margin expansion.
Fourth-quarter revenue decreased by 2.5 percent, reaching $709.2 million.
Net earnings per share (EPS) stood at $1.26, compared to $1.01 in the previous year.
Adjusted EPS decreased by 25.5 percent to $1.11.
The company is anticipating a positive 2022 outlook, with expectations of strong end-market demand and margin expansion.
Allegion
Allegion
Allegion Revenue by Segment
Revenue by Segment
Allegion Americas Revenue
CapyFin.comAllegion International Revenue
CapyFin.com Forward Guidance
The company expects full-year 2022 revenues to increase 6 to 7.5 percent on a reported basis and increase 7 to 8.5 percent organically, when compared with 2021, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements. Full-year 2022 reported EPS is expected to be in the range of $5.50 to $5.70, or $5.55 to $5.75 on an adjusted basis.
Positive Outlook
- Full-year 2022 revenues are expected to increase 6 to 7.5 percent on a reported basis.
- Organic revenue growth is projected to be 7 to 8.5 percent.
- Full-year 2022 EPS is expected to be in the range of $5.50 to $5.70.
- Adjusted EPS is expected to be $5.55 to $5.75.
- The company is targeting full-year available cash flow of approximately $465 to $485 million.
Challenges Ahead
- Adjustments to 2022 EPS include estimated impacts of approximately $0.05 per share for restructuring costs.
- The outlook includes an incremental investment of approximately $0.15 to $0.20 per share to support future growth opportunities in electronics and seamless access.
- Assumes a full-year adjusted effective tax rate of approximately 13 percent.
- Assumes an average diluted share count for the full year of approximately 88 million shares.
- Continued supply chain challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income