NYSE$ALLE

Allegion · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Allegion's financial performance decreased due to supply chain constraints and electronics and other parts shortages.

Allegion reported a decrease in third-quarter 2021 revenues and adjusted EPS, driven by supply chain constraints, while reaffirming its full-year outlook. Net revenues were $717 million, a 1.6% decrease, and adjusted EPS was $1.56, a 6.6% decrease compared to the prior year.

  • Third-quarter 2021 net earnings per share (EPS) of $1.59, compared with 2020 EPS of $1.58.
  • Third-quarter 2021 adjusted EPS of $1.56, down 6.6 percent compared with 2020 adjusted EPS of $1.67.
  • Third-quarter 2021 revenues of $717 million, down 1.6 percent on both a reported and organic basis.
  • Third-quarter 2021 operating margin of 19.3 percent, compared with 2020 operating margin of 22 percent; Adjusted operating margin of 20 percent, down 330 basis points compared with 2020 adjusted operating margin of 23.3 percent.

Headline financials

Total Revenue

$717M

Previous: $728M-1.6%
EPS (adj)

$1.56

Previous: $1.67-6.6%
Operating Margin

19.3%

Previous: 22.0%-12.3%
Adjusted Operating Margin

20.0%

Previous: 23.3%-14.2%
Interest Expense

$12.3M

Previous: $12.9M-4.7%
Effective Tax Rate

-2.0%

Previous: 8.0%-125.0%
Free Cash Flow

$144M

Previous: $147M-2.3%
Net Income

$144M

Previous: $147M-2.3%
Operating Income

$138M

Previous: $160M-13.7%
Gross Profit

$301M

Previous: $319M-5.9%
Cash & Equivalents

$504M

Previous: $429M+17.5%
Total Assets

$3.12B

Previous: $3.03B+2.9%

Revenue & EPS history

Allegion · Revenue · Quarterly

$717M

Q3 2021-1.6%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Allegion · $717M total across 2 segments · Q3 2021

  • Allegion Americas
    $524M-2.7%
  • Allegion International
    $193M+29.8%

Forward guidance

The company is reaffirming its updated full-year 2021 revenue, EPS and available cash flow outlooks from the pre-release of Oct. 1, 2021.

Tailwinds

  • The company expects reported revenue growth of 4 to 4.5 percent
  • The company expects organic revenue growth of 3 to 3.5 percent, when compared with 2020, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements.
  • The company expects full-year 2021 reported EPS to be in the $4.95 to $5.05 range
  • Adjusted EPS coming in between $5.00 to $5.10.
  • The company expects full-year 2021 available cash flow of approximately $460 to $480 million.

Headwinds

  • Adjustments to 2021 EPS of $0.05 per share include expected charges for restructuring and acquisition and integration expenses
  • The outlook includes incremental investment of approximately $0.15 to $0.20 per share
  • Assumes a full-year adjusted effective tax rate of approximately 9 percent
  • Assumes an average diluted share count for the full year of approximately 90.5 million shares.
  • Supply chain, labor and electronic component challenges are unprecedented.

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 Q3 2021

Historical avgQ3 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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