Allegion PLC (ALLE, Financial) 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 (ALLE, Financial) 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 (ALLE, Financial) 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 (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.
