NYSE$ALLE

Allegion · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Delivered solid top-line growth and margin expansion. Raised outlook for 2021 full-year revenue growth and EPS.

Allegion reported Q1 2021 revenues of $694.3 million, a 2.9% increase compared to 2020. Net earnings per share (EPS) was $1.18, and adjusted EPS was $1.20, up 15.4% compared to 2020. The company raised its full-year 2021 outlook for revenue growth and EPS.

  • First-quarter 2021 net earnings per share (EPS) of $1.18, compared with 2020 EPS of $0.00
  • First-quarter 2021 adjusted EPS of $1.20, up 15.4 percent compared with 2020 adjusted EPS of $1.04
  • First-quarter 2021 revenues of $694.3 million, up 2.9 percent compared to 2020 and up 0.5 percent on an organic basis
  • First-quarter 2021 operating margin of 18.9 percent, compared with 2020 operating margin of 4.3 percent; Adjusted operating margin of 19.3 percent, up 30 basis points compared with 2020 adjusted operation margin of 19 percent

Headline financials

Total Revenue

$694M

Previous: $675M+2.9%
EPS (adj)

$1.20

Previous: $1.04+15.4%
Operating Margin

18.9%

Previous: 4.3%+339.5%
Adjusted Operating Margin

19.3%

Previous: 19.0%+1.6%
Interest Expense

$12.3M

Previous: $12.9M-4.7%
Effective Tax Rate

11.7%

Previous: 95.8%-87.8%
Dividends Paid

$32.5M

No prior period
Free Cash Flow

$108M

Previous: $400K+26900.0%
Net Income

$108M

Previous: $400K+26900.0%
Operating Income

$131M

Previous: $28.9M+354.3%
Gross Profit

$297M

Previous: $293M+1.5%
Cash & Equivalents

$394M

Previous: $245M+60.7%
Total Assets

$2.95B

Previous: $2.76B+6.9%

Revenue & EPS history

Allegion · Revenue · Quarterly

$694M

Q1 2021+2.9%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Allegion · $694M total across 2 segments · Q1 2021

  • Allegion Americas
    $499M-2.6%
  • Allegion International
    $195M+50.4%

Forward guidance

The company is raising its full-year 2021 revenue outlook and now expects reported revenue to increase 3 to 4 percent and organic revenue to be up 2 to 3 percent, when compared with 2020, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements. The company is raising its full-year 2021 outlook for reported EPS to a range of $4.85 to $5.05 and raising adjusted EPS to a range of $5.00 to $5.15.

Tailwinds

  • Global macroeconomic indicators and construction indices continue to improve
  • Fundamentals of the business are strong
  • Demand improving throughout the quarter
  • Strategic investments are serving the company well
  • Company will position itself to emerge strong as the market migrates to seamless access solutions and as commercial and institutional projects move forward

Headwinds

  • Expect ongoing supply chain pressures
  • Expect ongoing inflationary pressures
  • Organic growth offset by continued headwinds in Americas non-residential
  • Adjustments to 2021 EPS include estimated impacts of $0.10 to $0.15 per share for restructuring costs
  • Outlook includes incremental investment of approximately $0.10 to $0.15 per share

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.3%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.9%

Avg return

30 days after

48%

26 / 54 earnings

Positive

+10.3%

Q1 2025

Best reaction

-9.5%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.6%-8.7%-12.6%
Q4 2025-9.2%-9.7%-19.9%
Q3 2025-2.5%-3.7%-7.2%
Q2 2025-0.6%+0.1%+3.2%
Q1 2025+10.3%+9.3%+11.7%
Q4 2024-5.6%-4.7%-4.3%
Q3 2024-5.5%-7.3%-6.3%
Q2 2024+4.5%+8.2%+7.7%
Q1 2024-2.1%-3.9%-3.1%
Q4 2023-1.0%-2.5%+2.2%
Q3 2023+1.2%+4.3%+8.6%
Q2 2023-9.1%-8.0%-13.6%
Q1 2023+9.3%+8.6%+5.1%
Q4 2022-1.1%-1.7%-12.5%
Q3 2022+9.1%+9.5%+17.5%
Q2 2022+1.4%-1.4%-6.3%
Q1 2022+1.1%-0.4%-3.4%
Q4 2021-2.6%-3.5%-0.5%
Q3 2021-2.4%-5.4%-2.2%
Q2 2021-0.9%-2.7%-1.3%
Q1 2021+4.0%+3.4%+3.3%
Q4 2020-7.6%-7.8%+3.1%
Q3 2020-1.0%-4.5%+8.8%
Q2 2020-9.5%-11.7%-10.2%
Q1 2020+3.9%+9.3%+1.4%
Q4 2019-5.6%-7.4%-32.2%
Q3 2019+8.6%+10.6%+14.1%
Q2 2019-2.7%-3.6%-13.7%
Q1 2019+2.9%+3.9%+4.0%
Q4 2018-3.9%-2.0%-2.9%
Q3 2018+3.7%+6.1%+11.8%
Q2 2018+1.9%+1.8%+9.0%
Q1 2018-6.3%-7.1%-5.1%
Q4 2017+4.8%+4.2%+2.3%
Q3 2017-7.2%-3.6%-4.1%
Q2 2017+3.7%+3.8%-1.1%
Q1 2017-1.4%-2.6%-0.4%
Q4 2016+6.4%+5.1%+10.2%
Q3 2016-3.0%-3.2%+3.5%
Q2 2016+0.7%-0.3%-0.4%
Q1 2016-2.1%
Q4 2015+4.8%
Q3 2015-0.0%
Q2 2015-0.8%
Q1 2015+1.5%
Q4 2014-1.6%
Q3 2013+5.6%
Q3 2014+5.6%
Q2 2013-1.9%
Q2 2014-1.9%
Q1 2013+4.8%
Q4 2012+4.8%
Q1 2014+4.8%
Q4 2013+2.8%

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