Allegion (ALLE) Q1 Earnings & Revenues Beat, Margins Grow
Zacks Investment Research | Apr 26, 2017 10:47PM ET
Allegion plc’s (NYSE:ALLE) first-quarter 2017 adjusted earnings came in at 73 cents per share, surpassing the Zacks Consensus Estimate of 69 cents by 5.8%. Adjusted earnings were up 19.7% from the prior-year quarter.
Quarterly net revenue of $548.8 million beat the consensus mark of $536.9 million by 2.2%. The figure increased 9.3% on a year-over-year basis on the back of strong organic growth that was slightly offset by foreign currency impact.
Revenues were also up 8% on an organic basis. The growth was driven by strong performance in the Americas segment, reflecting continued strength in the region’s channel initiatives, synergies from new product introductions, electronics growth and strong market demand in both non-residential and residential businesses.
Segment Details
Revenues at the Americas segment rose 12.3% year over year to $407.6 million, driven by positive contribution from strategic initiatives and delayed shipments in the prior year related to an ERP implementation. The newly acquired Republic Door business and favorable foreign currency added to the growth.
Organic revenues also increased 10.3% on the back of low double-digit non-residential and mid single-digit residential growth.
The EMEIA (Europe, Middle East, India and Africa) segment was down 0.1% to $118.4 million, as the unfavorable foreign currency impact was partly offset by contribution from acquisitions and organic growth.
Organically, revenues grew 1.3% driven by solid growth in the SimonsVoss business and price gains.
Revenues at the Asia-Pacific segment were up 9.6% year over year to $22.8 million. Solid contribution from Australia and New Zealand as well as favorable foreign currency drove the results.
Organically, revenues were up 4.8%.
Margins
Adjusted operating margin was 18.3%, up 150 basis points (bps) year over year. Adjusted EBITDA margin improved 130 bps to 21.1%.
Financials
Allegion ended the quarter with cash and cash equivalents of $189.6 million, as of Mar 31, 2017, compared with $312.4 million as of Dec 31, 2016.
The cash used in operating activities during the quarter was $40.9 million compared with $0.8 million a year ago. Available cash flow in the quarter was $48.7 million versus $8.2 million in the first quarter of 2016.
Capital expenditures totaled $7.8 million in the quarter compared with $7.4 million a year ago.
During first-quarter 2017, Allegion repurchased 0.4 million shares for $30 million under its previously authorized repurchase program of $500 million.
2017 Guidance
The company updated its full-year earnings guidance. Adjusted earnings per share is now expected in the range of $3.60-$3.70 versus the prior expectation of $3.55 to $3.70.
Get The News You Want
The company expects full-year 2017 reported and organic revenues growth of 5.5% to 6.5% from 2016.
Full-year adjusted effective tax rate is anticipated in the 18.5% to 19.5% range.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.