Allegion plc (ALLE) Tops Q4 EPS by 31c, Revenues Beat; Offers FY21 EPS Mid-Point Guidance Above Consensus

February 16, 2021 5:47 AM EST

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Allegion plc (NYSE: ALLE) reported Q4 EPS of $1.49, $0.31 better than the analyst estimate of $1.18. Revenue for the quarter came in at $727.3 million versus the consensus estimate of $687.82 million.

  • 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
  • Full-year 2020 EPS of $3.39, compared with 2019 EPS of $4.26; Full-year 2020 adjusted EPS of $5.11, up 4.5 percent compared with 2019 adjusted EPS of $4.89
  • Full-year 2020 revenue of $2.72 billion, down 4.7 percent compared with 2019 and down 4.8 percent on an organic basis
  • Full-year 2020 available cash flow was up $20.6 million to $443.2 million

“I am extremely proud of how the Allegion team pulled together and performed this year given the very difficult circumstances our operations and our people faced alongside our global communities,” Petratis added. “We finished the year with increased adjusted earnings per share and available cash flow, and we delivered those metrics against COVID-19 headwinds. In addition, we drove actions to keep our employees safe, maintained a very strong balance sheet in 2020 and continue to invest strategically to position the company for long-term success.”

GUIDANCE:

Allegion plc sees FY2021 EPS of $4.70-$4.85, versus the consensus of $4.74.

  • Full-year 2021 reported revenue is estimated to be down 0.5 to 1.5 percent with organic revenue decline at 1.5 to 2.5 percent; Full-year 2021 EPS outlook of $4.55 to $4.75, and $4.70 to $4.85 on an adjusted basis

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. The company expects organic growth in its Allegion Americas residential and Allegion International businesses, offset by continued headwinds in Allegion Americas non-residential.

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. Adjustments to 2021 EPS include estimated impacts of $0.10 to $0.15 per share for restructuring costs. The outlook includes incremental investment of approximately $0.10 per share; assumes a full-year adjusted effective tax rate of approximately 12 percent; and assumes an average diluted share count for the full year of approximately 91 million shares.

The company is targeting full-year available cash flow of approximately $400 to $420 million.

“Allegion’s future has never been brighter,” Petratis said. “The long-term fundamentals for seamless and digital solutions are sound, and we continue to invest in our future. The capability of our employees, the legacy of our innovation, and the continued execution of a balanced capital allocation strategy will position Allegion stronger exiting the pandemic than when we entered.”

For earnings history and earnings-related data on Allegion plc (ALLE) click here.



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