NYSE$ALLE

Allegion · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Allegion's Q4 2022 financial results were reported, with revenue increasing by 21.5 percent and adjusted EPS up by 44.1 percent.

Allegion reported a strong fourth quarter in 2022, with net revenues of $861.5 million and net earnings of $135.3 million, or $1.53 per share. Adjusted EPS increased by 44.1 percent compared to the previous year. The company's performance was driven by strong price realization and volume growth in the Americas non-residential business.

  • Fourth-quarter revenues increased 21.5 percent compared to 2021, and 11.4 percent on an organic basis.
  • Net earnings per share (EPS) was $1.53, compared to $1.26 in 2021.
  • Adjusted EPS was $1.60, up 44.1 percent compared to $1.11 in 2021.
  • The Americas segment revenues increased 36.9 percent (up 18 percent on an organic basis).

Headline financials

Total Revenue

$862M

Previous: $709M+21.5%
EPS (adj)

$1.60

Previous: $1.11+44.1%
Operating Margin

18.5%

Previous: 16.2%+14.2%
Adjusted Operating Margin

19.5%

Previous: 16.4%+18.9%
Interest Expense

$23.7M

Previous: $13.2M+79.5%
Effective Tax Rate

3.4%

Previous: 9.5%-64.2%
Capital Expenditures

$64M

Previous: $45.4M+41.0%
Free Cash Flow

$128M

Previous: $86.8M+47.9%
Net Income

$135M

Previous: $113M+20.1%
Operating Income

$159M

Previous: $115M+38.5%
Gross Profit

$351M

Previous: $287M+22.4%
Cash & Equivalents

$288M

Previous: $398M-27.6%
Total Assets

$3.99B

Previous: $3.05B+30.8%
Stock-Based Comp

$24.5M

Previous: $23.4M+4.7%

Revenue & EPS history

Allegion · Revenue · Quarterly

$862M

Q4 2022+21.5%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Allegion · $862M total across 2 segments · Q4 2022

  • Allegion Americas
    $684M+36.9%
  • Allegion International
    $178M-15.3%

Forward guidance

The company expects full-year 2023 revenues to increase 9 to 10.5 percent on a reported basis and increase 2.5 to 4.5 percent organically, when compared with 2022.

Tailwinds

  • Full-year 2023 revenues to increase 9 to 10.5 percent on a reported basis.
  • Full-year 2023 revenues to increase 2.5 to 4.5 percent organically.
  • Full-year 2023 reported EPS is expected to be in the range of $5.70 to $5.90.
  • Adjusted EPS expected to be $6.30 to $6.50.
  • The company expects full-year available cash flow of approximately $470 to $490 million.

Headwinds

  • Outlook assumes approximately a $0.29 headwind for interest and other income.
  • Full-year adjusted effective tax rate of approximately 15 to 15.5 percent
  • Amortization of acquired intangible assets (expected 2023 impact of approximately $0.40)
  • Adjustments to 2023 EPS include estimated impacts of approximately $0.20 per share for restructuring, M&A and amortization expense related to acquired backlog (approximately $9 million pre-tax).
  • Electronics growth for the segment came in at nearly 50 percent for the quarter, against significant supply chain headwinds in the prior year.

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 2022

Historical avgQ4 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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