NYSE$ALLE

Allegion · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a strong quarter with revenue and earnings growth, driven by robust price realization and volume in the Americas, offset by international weakness.

Allegion reported Q3 2022 revenues of $913.7 million, up 27.4% year-over-year, and net earnings of $114.6 million, or $1.30 per share. Adjusted EPS was $1.64, a 5.1% increase compared to the prior year. The company is affirming its full-year 2022 revenue growth outlook of 13 to 14 percent and increasing its organic revenue growth outlook to 9.5 to 10.5 percent and revising its full-year 2022 reported EPS to be in the $4.90 to $5.00 range, with adjusted EPS between $5.40 to $5.50.

  • Third-quarter 2022 net earnings per share (EPS) of $1.30, compared with 2021 EPS of $1.59.
  • Third-quarter 2022 adjusted EPS of $1.64, up 5.1 percent compared with 2021 adjusted EPS of $1.56.
  • Third-quarter 2022 revenues of $913.7 million, up 27.4 percent on a reported basis and up 18.6 percent on an organic basis.
  • Third-quarter 2022 operating margin of 17.8 percent, compared with 2021 operating margin of 19.3 percent; Adjusted operating margin of 21 percent, up 100 basis points compared with 2021 adjusted operating margin of 20 percent.

Headline financials

Total Revenue

$914M

Previous: $717M+27.4%
EPS (adj)

$1.64

Previous: $1.56+5.1%
Operating Margin

17.8%

Previous: 19.3%-7.8%
Adjusted Operating Margin

21.0%

Previous: 20.0%+5.0%
Interest Expense

$23.1M

Previous: $12.3M+87.8%
Effective Tax Rate

14.3%

Previous: -2.0%+815.0%
Free Cash Flow

$115M

Previous: $144M-20.1%
Net Income

$115M

Previous: $144M-20.1%
Operating Income

$163M

Previous: $138M+17.7%
Gross Profit

$368M

Previous: $301M+22.5%
Cash & Equivalents

$282M

Previous: $504M-44.0%
Total Assets

$3.94B

Previous: $3.12B+26.5%

Revenue & EPS history

Allegion · Revenue · Quarterly

$914M

Q3 2022+27.4%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Allegion · $914M total across 2 segments · Q3 2022

  • Allegion Americas
    $747M+42.5%
  • Allegion International
    $167M-13.6%

Forward guidance

The company is affirming its full-year 2022 revenue growth outlook of 13 to 14 percent and increasing its organic revenue growth outlook to 9.5 to 10.5 percent, which excludes the expected impacts of acquisitions, divestitures and foreign currency movements. The company is revising its full-year 2022 reported EPS to be in the $4.90 to $5.00 range, with adjusted EPS between $5.40 to $5.50.

Tailwinds

  • Affirming full-year 2022 reported revenue growth outlook of 13 to 14 percent
  • Increasing full-year 2022 organic revenue growth outlook to a range of 9.5 to 10.5 percent
  • Strength in Allegion Americas
  • Lower intangible asset amortization

Headwinds

  • Revising full-year 2022 EPS outlook to a range of $4.90 to $5.00 and adjusted EPS outlook to a range of $5.40 to $5.50
  • Approximately negative $0.05 adjusted EPS impact related to Access Technologies and associated costs of the acquisition
  • Loss on the divestiture of Milre
  • Purchase accounting updates related to the recently acquired Access Technologies business
  • Weakness in Allegion International

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 2022

Historical avgQ3 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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