Allegion Q4 2022 Earnings Report
Key Takeaways
Allegion reported a strong fourth quarter in 2022, with net revenues of $861.5 million and net earnings of $135.3 million, or $1.53 per share. Adjusted EPS increased by 44.1 percent compared to the previous year. The company's performance was driven by strong price realization and volume growth in the Americas non-residential business.
Fourth-quarter revenues increased 21.5 percent compared to 2021, and 11.4 percent on an organic basis.
Net earnings per share (EPS) was $1.53, compared to $1.26 in 2021.
Adjusted EPS was $1.60, up 44.1 percent compared to $1.11 in 2021.
The Americas segment revenues increased 36.9 percent (up 18 percent on an organic basis).
Allegion
Allegion
Allegion Revenue by Segment
Forward Guidance
The company expects full-year 2023 revenues to increase 9 to 10.5 percent on a reported basis and increase 2.5 to 4.5 percent organically, when compared with 2022.
Positive Outlook
- Full-year 2023 revenues to increase 9 to 10.5 percent on a reported basis.
- Full-year 2023 revenues to increase 2.5 to 4.5 percent organically.
- Full-year 2023 reported EPS is expected to be in the range of $5.70 to $5.90.
- Adjusted EPS expected to be $6.30 to $6.50.
- The company expects full-year available cash flow of approximately $470 to $490 million.
Challenges Ahead
- Outlook assumes approximately a $0.29 headwind for interest and other income.
- Full-year adjusted effective tax rate of approximately 15 to 15.5 percent
- Amortization of acquired intangible assets (expected 2023 impact of approximately $0.40)
- Adjustments to 2023 EPS include estimated impacts of approximately $0.20 per share for restructuring, M&A and amortization expense related to acquired backlog (approximately $9 million pre-tax).
- Electronics growth for the segment came in at nearly 50 percent for the quarter, against significant supply chain headwinds in the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income