NYSE$ALLE

Allegion · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Allegion reported mixed Q4 2020 results, with revenue up slightly but operating income down due to charges related to assets held for sale. However, adjusted EPS increased, driven by EMEA performance and cost mitigation actions.

Allegion's Q4 2020 revenue increased by 1.1% to $727.3 million, while net earnings were $93.3 million, or $1.01 per share. Adjusted EPS rose by 16.4% to $1.49. The company's performance was supported by growth in the Americas residential business and rebound in EMEA, but affected by COVID-19 impacts.

  • Fourth-quarter 2020 net earnings per share (EPS) of $1.01, compared with 2019 EPS of $0.86
  • Fourth-quarter 2020 adjusted EPS of $1.49, up 16.4 percent compared with 2019 adjusted EPS of $1.28
  • Fourth-quarter 2020 revenues of $727.3 million, up 1.1 percent compared to 2019 and down 0.6 percent on an organic basis
  • The continued rebound in EMEA, growth in the Americas residential business and the ongoing cost mitigation actions taken throughout the entire company helped Allegion deliver strong margin expansion in the fourth quarter

Headline financials

Total Revenue

$727M

Previous: $720M+1.1%
EPS (adj)

$1.49

Previous: $1.28+16.4%
Operating Margin

16.2%

Previous: 19.9%-18.6%
Adjusted Operating Margin

22.5%

Previous: 21.0%+7.1%
Interest Expense

$12.3M

Previous: $13.3M-7.5%
Effective Tax Rate

11.7%

Previous: 17.4%-32.8%
Capital Expenditures

$47.1M

Previous: $65.6M-28.2%
Free Cash Flow

$443M

Previous: $143M+209.5%
Net Income

$93.3M

Previous: $80.7M+15.6%
Operating Income

$118M

Previous: $143M-17.9%
Gross Profit

$320M

Previous: $319M+0.2%
Cash & Equivalents

$480M

Previous: $355M+35.2%
Total Assets

$3.07B

Previous: $2.97B+3.4%
Stock-Based Comp

$20.8M

Previous: $20.4M+2.0%

Revenue & EPS history

Allegion · Revenue · Quarterly

$727M

Q4 2020+1.1%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Allegion · $727M total across 2 segments · Q4 2020

  • Allegion Americas
    $521M-1.0%
  • Allegion International
    $206M+37.8%

Forward guidance

The company expects full-year 2021 revenues to decrease 0.5 to 1.5 percent on a reported basis and decrease 1.5 to 2.5 percent organically, when compared with 2020, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements. Full-year 2021 reported EPS is expected to be in the range of $4.55 to $4.75, or $4.70 to $4.85 on an adjusted basis.

Tailwinds

  • The company expects organic growth in its Allegion Americas residential and Allegion International businesses
  • Full-year 2021 reported EPS is expected to be in the range of $4.55 to $4.75, or $4.70 to $4.85 on an adjusted basis
  • The outlook includes incremental investment of approximately $0.10 per share
  • Assumes a full-year adjusted effective tax rate of approximately 12 percent
  • The company is targeting full-year available cash flow of approximately $400 to $420 million

Headwinds

  • The company expects full-year 2021 revenues to decrease 0.5 to 1.5 percent on a reported basis and decrease 1.5 to 2.5 percent organically, when compared with 2020
  • The company expects organic growth in its Allegion Americas residential and Allegion International businesses, offset by continued headwinds in Allegion Americas non-residential
  • Adjustments to 2021 EPS include estimated impacts of $0.10 to $0.15 per share for restructuring costs.
  • Assumes an average diluted share count for the full year of approximately 91 million shares.
  • COVID-19 headwinds

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 Q4 2020

Historical avgQ4 2020

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro