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Allegion plc’s (ALLE - Free Report) third-quarter 2024 adjusted earnings of $2.16 per share beat the Zacks Consensus Estimate of $1.93. The bottom line increased 11.3% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
ALLE’s Revenue Details
Allegion’s revenues were $967.1 million, which increased 5.4% year over year. Organic revenues increased 3.3%, driven by price realization and volume growth. Revenues beat the Zacks Consensus Estimate of $956 million.
Acquired assets boosted revenues by 1.9%. Forex woes left a positive impact of 0.2%.
ALLE reports revenues under two segments. A brief discussion of quarterly results is provided below:
Revenues from Allegion Americas increased 5.6% year over year to $782.4 million. The figure accounted for 80.9% of the quarter’s revenues. Our estimate for segmental revenues was $773.2 million.
Operating income for the segment was $221.1 million, up 10.4% year over year. Our estimate was $223.4 million.
Revenues from Allegion International were $184.7 million, up 4.4% year over year. The metric accounted for 19.1% of the quarter’s revenues. Our estimate for segmental revenues was $182.8 million.
Segmental operating income was $17.9 million, up 14% year over year. Our estimate was $22 million.
In the quarter, Allegion’s cost of revenues increased 4% year over year to $535.0 million. Gross profit was $432 million, up 7.2% year over year, while the gross margin jumped 80 basis points (bps) to 44.7%.
Selling and administrative expenses inched up 3.3% year over year to $217.1 million. Adjusted EBITDA was $248.3 million, reflecting a year-over-year increase of 9.6%. The margin grew 100 bps year over year to 25.7%.
Adjusted operating income increased 9.5% year over year to $233.7 million. The adjusted margin was 24.2%, up 100 bps. Interest expenses were $28.8 million, up 25.8% year over year. The effective tax rate was 10.5%, up from 8.1% in the year-ago quarter.
Allegion’s Balance Sheet and Cash Flow
While exiting the third quarter, Allegion had cash and cash equivalents of $878.9 million compared with $468.1 million at the end of fourth-quarter 2023. Long-term debt was $2 billion compared with $1.6 billion at the end of fourth-quarter 2023.
In the first nine months of 2024, ALLE generated net cash of $456.0 million from operating activities, reflecting an increase of 19.7% year over year. Capital expenditure was $68 million, up 12.3% year over year. The available cash flow was $388 million.
Allegion repurchased shares for $120 million. Dividends paid out totaled $125.9 million, reflecting an increase of 5.4% year over year.
ALLE’s 2024 Outlook Raised
ALLE now expects revenues to increase in the range of 2.5-3.5% from the year-ago level. The company anticipates organic revenues to grow in the range of 1.5-2.5%.
Adjusted earnings are projected to be in the range of $7.35-$7.45 per share compared with the prior expected range of $7.15-$7.30.
The company estimates available cash flow to be in the range of $540-$570 million.
Avery Dennison Corporation (AVY - Free Report) has delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the consensus estimate of $2.2 billion.
John Bean Technologies Corporation reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the Zacks Consensus Estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.
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Allegion's Q3 Earnings Surpass Estimates, Revenues Increase Y/Y
Allegion plc’s (ALLE - Free Report) third-quarter 2024 adjusted earnings of $2.16 per share beat the Zacks Consensus Estimate of $1.93. The bottom line increased 11.3% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
ALLE’s Revenue Details
Allegion’s revenues were $967.1 million, which increased 5.4% year over year. Organic revenues increased 3.3%, driven by price realization and volume growth. Revenues beat the Zacks Consensus Estimate of $956 million.
Acquired assets boosted revenues by 1.9%. Forex woes left a positive impact of 0.2%.
ALLE reports revenues under two segments. A brief discussion of quarterly results is provided below:
Revenues from Allegion Americas increased 5.6% year over year to $782.4 million. The figure accounted for 80.9% of the quarter’s revenues. Our estimate for segmental revenues was $773.2 million.
Operating income for the segment was $221.1 million, up 10.4% year over year. Our estimate was $223.4 million.
Revenues from Allegion International were $184.7 million, up 4.4% year over year. The metric accounted for 19.1% of the quarter’s revenues. Our estimate for segmental revenues was $182.8 million.
Segmental operating income was $17.9 million, up 14% year over year. Our estimate was $22 million.
Allegion PLC Price, Consensus and EPS Surprise
Allegion PLC price-consensus-eps-surprise-chart | Allegion PLC Quote
ALLE’s Margin Profile
In the quarter, Allegion’s cost of revenues increased 4% year over year to $535.0 million. Gross profit was $432 million, up 7.2% year over year, while the gross margin jumped 80 basis points (bps) to 44.7%.
Selling and administrative expenses inched up 3.3% year over year to $217.1 million. Adjusted EBITDA was $248.3 million, reflecting a year-over-year increase of 9.6%. The margin grew 100 bps year over year to 25.7%.
Adjusted operating income increased 9.5% year over year to $233.7 million. The adjusted margin was 24.2%, up 100 bps. Interest expenses were $28.8 million, up 25.8% year over year. The effective tax rate was 10.5%, up from 8.1% in the year-ago quarter.
Allegion’s Balance Sheet and Cash Flow
While exiting the third quarter, Allegion had cash and cash equivalents of $878.9 million compared with $468.1 million at the end of fourth-quarter 2023. Long-term debt was $2 billion compared with $1.6 billion at the end of fourth-quarter 2023.
In the first nine months of 2024, ALLE generated net cash of $456.0 million from operating activities, reflecting an increase of 19.7% year over year. Capital expenditure was $68 million, up 12.3% year over year. The available cash flow was $388 million.
Allegion repurchased shares for $120 million. Dividends paid out totaled $125.9 million, reflecting an increase of 5.4% year over year.
ALLE’s 2024 Outlook Raised
ALLE now expects revenues to increase in the range of 2.5-3.5% from the year-ago level. The company anticipates organic revenues to grow in the range of 1.5-2.5%.
Adjusted earnings are projected to be in the range of $7.35-$7.45 per share compared with the prior expected range of $7.15-$7.30.
The company estimates available cash flow to be in the range of $540-$570 million.
Allegion’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Companies
Avery Dennison Corporation (AVY - Free Report) has delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the consensus estimate of $2.2 billion.
John Bean Technologies Corporation reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the Zacks Consensus Estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.