NYSE$ALLE

Allegion · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Strong execution drove record Q2 revenue and adjusted EPS, with raised full-year outlook.

Allegion reported a strong second quarter with a 5.8% increase in revenue to $965.6 million and a net earnings per share of $1.77. The company raised its full-year guidance for reported revenue and adjusted EPS, affirming its available cash flow outlook.

  • Net earnings per share (EPS) of $1.77, up 9.9% compared with $1.61; Adjusted EPS of $1.96, up 11.4% compared with $1.76.
  • Revenues of $965.6 million, up 5.8% on a reported basis and up 5.2% on an organic basis.
  • Operating margin of 21.6%, compared with 20.2%; Adjusted operating margin of 23.7%, up 150 basis points compared with 22.2%.
  • Raising full-year reported revenue growth to a range of 2.5% to 3.5%.

Headline financials

Total Revenue

$966M

Previous: $913M+5.8%
EPS

$1.77

Previous: $1.76+0.6%
Operating Margin

21.6%

Previous: 20.2%+6.9%
Adjusted Operating Margin

23.7%

Previous: 22.2%+6.8%
Interest Expense

$25.1M

Previous: $23.7M+5.9%
Effective Tax Rate

17.8%

Previous: 12.6%+41.3%
Capital Expenditures

-$20.7M

No prior period
Free Cash Flow

$155M

Previous: $142M+9.4%
Net Income

$155M

Previous: $142M+9.4%
Operating Income

$209M

Previous: $185M+13.2%
Gross Profit

$428M

Previous: $402M+6.6%
Cash & Equivalents

$748M

Previous: $323M+131.7%
Total Assets

$4.78B

Previous: $4.16B+14.8%

Revenue & EPS history

Allegion · Revenue · Quarterly

$966M

Q2 2024+5.8%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Allegion · $918M total across 2 segments · Q3 2023

  • Allegion Americas
    $741M-0.8%
  • Allegion International
    $177M+6.3%

Forward guidance

The company is raising its revenue growth for full-year 2024, which is expected to be 2.5% to 3.5%, and tightening its organic revenue growth to be 1.5% to 2.5%, excluding the impacts of acquisition, divestitures and foreign currency movements. The company is raising the outlook for full-year 2024 EPS and expects it to be in the range of $6.50 to $6.65, or $7.15 to $7.30 on an adjusted basis. The company affirms expected full-year available cash flow of approximately $540 to $570 million.

Tailwinds

  • Raising full-year reported revenue growth to a range of 2.5% to 3.5%.
  • Tightening its organic revenue growth to be 1.5% to 2.5%, excluding the impacts of acquisition, divestitures and foreign currency movements.
  • Raising the outlook for full-year 2024 EPS and expects it to be in the range of $6.50 to $6.65, or $7.15 to $7.30 on an adjusted basis.
  • The outlook assumes a headwind of approximately $0.37 based on a full-year adjusted effective tax rate of 18.0% to 19.0%, inclusive of the estimated impacts of global minimum tax.
  • The company affirms expected full-year available cash flow of approximately $540 to $570 million.

Headwinds

  • The outlook assumes a headwind of approximately $0.37 based on a full-year adjusted effective tax rate of 18.0% to 19.0%, inclusive of the estimated impacts of global minimum tax.
  • Adjustments to 2024 EPS include estimated impacts of approximately $0.52 per share for acquisition-related amortization, as well as $0.13 per share for M&A, restructuring and other.
  • The outlook assumes an average diluted share count for the full year of approximately 87.7 million shares.
  • Year-to-date available cash flow for 2024 was $176.0 million, a decrease of $14.1 million versus the prior-year period.
  • The company’s effective tax rate for second-quarter 2024 was 17.8%, compared with 12.6%.

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 2024

Historical avgQ2 2024

+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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