Allegion Smashes Q2 Earnings Estimates; Raises FY21 Outlook

  • Allegion PLC ALLE reported second-quarter FY21 sales growth of 26.7% year-on-year, to $746.9 million, beating the analyst consensus of $708.47 million.
  • The revenue increase was driven by Allegion Americas and Allegion International businesses, buoyed by strong demand and the favorable comparable from 2020 COVID-related shutdowns.
  • Allegion Americas segment revenues increased 23.7% Y/Y, and the international segment rose 36% Y/Y.
  • Gross profit rose 30% Y/Y to $320.5 million, with the gross margin expanding by 10 basis points to 42.91%.
  • Selling and administrative expenses increased by 16.7% to $175.1 million.
  • The operating margin expanded by 310 basis points Y/Y to 19.5%, and operating income rose 50.7% to $48.9 million.
  • Adjusted EPS of $1.32 beat the analyst consensus of $1.29.
  • The company held $460.2 million in cash and equivalents, and the total debt of Allegion amounted to $1.4 billion.
  • "We have stepped up our strategic investments and partnerships and believe those actions, paired with our demonstrated abilities in supply chain management, position us well to emerge from the pandemic strong as the market migrates to seamless access solutions," said CEO David D. Petratis.
  • Outlook: Allegion sees FY21 organic revenue growth of 5.5% - 6%.
  • It expects FY21 adjusted EPS of $5.25 - $5.40, higher than the $5.24 consensus.
  • Price action: ALLE shares are trading lower by 0.03% at $140.47 in premarket on the last check Thursday.

Posted In: BriefsEarningsNewsGuidance

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.