https://assets.capyfin.com/instruments/678fdc13234e27009c5d59fc.png avatar
Allegion
🇮🇪 NYSE:ALLE
View Company
OverviewEarningsDividends
•
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.

Total Revenue
$709M
Previous year: $727M
-2.5%
EPS
$1.11
Previous year: $1.49
-25.5%
Operating Margin
16.2%
Previous year: 16.2%
+0.0%
Adjusted Operating Margin
16.4%
Previous year: 22.5%
-27.1%
Interest Expense
$13.2M
Previous year: $12.3M
+7.3%
Gross Profit
$287M
Previous year: $320M
-10.4%
Cash and Equivalents
$398M
Previous year: $480M
-17.2%
Free Cash Flow
$86.8M
Previous year: $443M
-80.4%
Total Assets
$3.05B
Previous year: $3.07B
-0.6%

Allegion

Allegion

Allegion Revenue by Segment

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

Company Overview

Full financial data and analysis

View Allegion