Allegion PLC (ALLE) Reports Q3-2023 Earnings: EPS Up 36.2%, Raises Full-Year Outlook
Allegion PLC (NYSE:ALLE) reported a 36.2% increase in net earnings per share (EPS) from $1.30 to $1.77.
Revenues for the quarter were $917.9 million, up 0.5% on a reported basis and down 0.6% on an organic basis.
The company raised its full-year adjusted EPS outlook to a range of $6.80 to $6.90.
Year-to-date available cash flow for 2023 was $320.4 million, an increase of $94.8 million versus the prior-year period.
Allegion PLC (NYSE:ALLE) released its Q3-2023 earnings report on October 31, 2023. The company reported a 36.2% increase in net earnings per share (EPS) from $1.30 to $1.77. Adjusted EPS was $1.94, up 12.1% compared with $1.73. Revenues for the quarter were $917.9 million, up 0.5% on a reported basis and down 0.6% on an organic basis. The company also reported an operating margin of 21.0%, compared with 17.8% in the same quarter of the previous year.
Financial Highlights
Allegion PLC (NYSE:ALLE) reported net revenues of $917.9 million and net earnings of $156.3 million, or $1.77 per share. Excluding charges related to restructuring, acquisition and integration costs, as well as amortization expense related to acquired intangible assets, adjusted net earnings were $171.5 million, or $1.94 per share, up 12.1%. The company had mid-teens global organic growth in electronics and software solutions in the quarter.
Company Performance
Allegion's third-quarter results were driven by the team's outstanding operational execution. The company continued to expand margins, strengthened its balance sheet, and significantly increased its year-to-date cash flow. The demand for Allegion's electronics solutions remains strong, with mid-teens organic growth in electronics and software solutions in the quarter.
Segment Results
The Americas segment revenues were down 0.1% (flat on an organic basis). The International segment revenues increased 3.0% (down 2.8% on an organic basis). Soft end markets, especially in the Global Portable Security business and China, more than offset strength in electronics and software solutions and positive price realization.
Full-Year Outlook
The company affirms its revenue growth for full-year 2023, which is expected to be 11.5% to 12.5%, with organic revenue growth expected to be 5.5% to 6.5%, excluding the expected impacts of acquisitions, divestitures and foreign currency movements. The company is raising the outlook for full-year 2023 adjusted EPS and expects it to be in the $6.80 to $6.90 range.
Conclusion
In conclusion, Allegion PLC (NYSE:ALLE) has shown strong performance in Q3-2023 with a significant increase in EPS and a slight increase in revenues. The company's strong operational execution and demand for its electronic solutions have contributed to its positive results. Looking forward, Allegion PLC (NYSE:ALLE) is optimistic about its full-year outlook, raising its adjusted EPS outlook while affirming its revenue and available cash flow guidance.
Explore the complete 8-K earnings release (here) from Allegion PLC for further details.
This article first appeared on GuruFocus.
