NYSE$ALLE

Allegion · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Allegion reported an increase in revenue and adjusted EPS compared to the prior year. The company revises full-year outlook.

Allegion's second-quarter 2022 results showed revenue growth of 3.5% to $773.1 million and adjusted EPS increased 3.8% to $1.37. The company is revising its full-year outlook for revenue growth and EPS.

  • Second-quarter 2022 net earnings per share (EPS) of $1.30, compared with 2021 EPS of $1.31.
  • Second-quarter 2022 adjusted EPS of $1.37, up 3.8 percent compared with 2021 adjusted EPS of $1.32.
  • Second-quarter 2022 revenues of $773.1 million, up 3.5 percent on a reported basis and up 6.4 percent on an organic basis.
  • Second-quarter 2022 operating margin of 19 percent, compared with 2021 operating margin of 19.5 percent; Adjusted operating margin of 20 percent, up 40 basis points compared with 2021 adjusted operating margin of 19.6 percent.

Headline financials

Total Revenue

$773M

Previous: $747M+3.5%
EPS (adj)

$1.37

Previous: $1.32+3.8%
Operating Margin

19.0%

Previous: 19.5%-2.6%
Adjusted Operating Margin

20.0%

Previous: 19.6%+2.0%
Interest Expense

$17.2M

Previous: $12.4M+38.7%
Effective Tax Rate

13.6%

Previous: 12.8%+6.2%
Free Cash Flow

$115M

Previous: $119M-3.0%
Net Income

$115M

Previous: $119M-3.0%
Operating Income

$147M

Previous: $145M+1.2%
Gross Profit

$315M

Previous: $321M-1.7%
Cash & Equivalents

$920M

Previous: $460M+99.8%
Total Assets

$3.65B

Previous: $3.06B+19.4%

Revenue & EPS history

Allegion · Revenue · Quarterly

$773M

Q2 2022+3.5%vs Q2 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Allegion · $773M total across 2 segments · Q2 2022

  • Allegion Americas
    $592M+7.8%
  • Allegion International
    $181M-8.5%

Forward guidance

The company is raising its full-year 2022 revenue outlook and now expects reported revenue growth of 13 to 14 percent and organic revenue growth of 9 to 10 percent. The company is revising its full-year 2022 reported EPS to be in the $5.05 to $5.15 range, with adjusted EPS between $5.35 to $5.45.

Tailwinds

  • Raising full-year 2022 revenue outlook to 13-14% growth.
  • Organic revenue growth expected to be 9-10%.
  • Increase in organic outlook driven by pricing actions.
  • Full-year 2022 reported EPS expected in the $5.05 to $5.15 range.
  • Adjusted EPS expected between $5.35 to $5.45.

Headwinds

  • Includes an additional $0.09 per share pressure related to currency movements.
  • Includes approximately negative $0.10 adjusted EPS impact for the balance of the year related to the Access Technologies business and costs related to the acquisition.
  • Approximately $0.20 per share from operations.
  • Approximately negative $0.13 per share for intangible asset amortization.
  • Approximately negative $0.17 per share for interest expense.

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 Q2 2022

Historical avgQ2 2022

+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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