Allegion plc (NYSE: ALLE) reported Q2 EPS of $0.92, $0.10 better than the analyst estimate of $0.82. Revenue for the quarter came in at $589.5 million versus the consensus estimate of $610.8 million.

• Second-quarter 2020 net earnings per share (EPS) of $0.80, compared with 2019 EPS of $1.16; Adjusted 2020 EPS of $0.92, down 27 percent compared with 2019 adjusted EPS of $1.26
• Second-quarter 2020 revenues of $589.5 million, down 19.4 percent compared to 2019, down 18.5 percent on an organic basis
• Second-quarter 2020 operating margin of 16.4 percent, compared with 2019 operating margin of 19.9 percent; Adjusted operating margin of 18.9 percent, compared with 2019 adjusted operating margin of 21.5 percent
• Full-year 2020 reported revenue now estimated to be down 9 to 10 percent with organic revenue decline at 8 to 9 percent; Full-year 2020 EPS outlook of $2.70 to $2.95, and $4.15 to $4.30 on an adjusted basis

“I’m pleased with our operational performance in difficult circumstances and a challenging market,” Chairman, President and CEO David D. Petratis said. “Early on, we took necessary and prudent actions to reduce spending, secure our supply chain, protect liquidity, as well as keep our people safe and our operations running wherever possible. Our markets and business performance showed continuous improvement throughout the quarter.”

GUIDANCE:

Allegion plc sees FY2020 EPS of $4.15-$4.30, versus the consensus of $4.14.

2020 Outlook

The company is re-issuing outlooks for 2020 for revenue, EPS and available cash flow. All the following estimates assume no further disruptions related to COVID-19.

The company’s total revenue outlook is now projected to be down 9 to 10 percent, and organic revenue is estimated to be down 8 to 9 percent compared to 2019. All regions are now projected to experience organic revenue declines, with Americas down 7.5 to 8.5 percent, EMEA down 9 to 10 percent and Asia Pacific down 10.5 to 12.5 percent.

The company’s EPS outlook now stands at $2.70 to $2.95 with an adjusted EPS outlook of $4.15 to $4.30. Adjustments to 2020 EPS include the non-cash charges related to goodwill and indefinite-lived trade name impairments experienced in the first quarter along with estimated impacts for restructuring costs. The outlook assumes investment spend at approximately $0.05 per share; a full-year adjusted effective tax rate of approximately 13.5 to 14.5 percent; and an average diluted share count for the full year of approximately 93 million shares.

The company’s full-year available cash flow outlook is now projected to be approximately $350 to $370 million.

“We are positioned well for long-term resiliency, with solid underlying fundamentals and the ability to press forward on our vision of seamless access and a safer world,” Petratis added. “Moving into the second half of 2020, we will focus on our strategy, our people and our business execution. We’ll continue to be very disciplined in addressing our expenses, adapting to demand and managing our cash flow and liquidity.”

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