Allegion plc ALLE is scheduled to release third-quarter 2024 results on Oct. 24, before market open.
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The Zacks Consensus Estimate for earnings has remained steady in the past 30 days. The company has an impressive earnings surprise history, having surpassed the consensus estimate in each of the preceding four quarters, the average surprise being 10.3%.
The consensus estimate for revenues is pegged at $956 million, indicating growth of 4.2% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $1.93 per share, indicating a 0.5% decline from the year-ago quarter’s number.
Let’s see how things have shaped up for Allegion this earnings season.
Allegion PLC Price and EPS Surprise
Allegion PLC price-eps-surprise | Allegion PLC Quote
Factors to Note
The company has been witnessing strength in the Allegion Americas segment, driven by stable demand across end markets like education, healthcare, government, hospitality and retail. This, in turn, is likely to have aided the top-line performance of the segment. We expect revenues from the segment to increase 4.4% year over year to $773.2 million.
Increase in demand for electronic security products, driven by growing awareness about the security and safety of people and infrastructure, is expected to have driven the Allegion International segment’s performance. We expect revenues from the segment to increase 3.3% year over year to $182.8 million.
Allegion has always been focused on expanding its product offerings and market presence through buyouts. In June 2024, the company acquired Krieger Specialty Products. The addition of Krieger’s expertise in specialty solutions will enable Allegion to strengthen its door and frame portfolio. Also, in the same month, it purchased Unicel Architectural Corp. The inclusion of Unicel’s proficiency in glass and building envelope solutions will enable it to boost its product portfolio within the non-residential business. Both the acquired businesses have been incorporated into the Allegion Americas segment.
Its acquisition of Dorcas (in March 2024) strengthened its security products portfolio and boosted its presence in the healthcare and education sectors. The buyout of Boss Door Controls (in February 2024) expanded ALLE’s U.K. business with a complementary product portfolio and broader channel access, which is likely to have boosted its top line. We expect the company’s total revenues to be $956.0 million, indicating an increase of 4.2% year over year.
However, escalating operating costs, owing to higher material costs and increased selling, general and administrative expenses, are likely to have impacted ALLE’s bottom line. ALLE’s adjusted earnings are expected to be $1.9 per share, indicating a 2.3% decrease from the year-ago quarter’s number.
Also, given the company’s extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Allegion's overseas business.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for ALLE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: ALLE has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.93. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: ALLE presently carries a Zacks Rank of 2.
Stocks to Consider
Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Ingersoll Rand Inc. IR has an Earnings ESP of +1.22% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release third-quarter results on Oct. 31. Ingersoll’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11%.
Zebra Technologies ZBRA has an Earnings ESP of +2.01% and a Zacks Rank of 3 at present. The company is slated to release third-quarter results on Oct. 29.
Zebra Technologies’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.9%.
Crane Company CR has an Earnings ESP of +0.09% and a Zacks Rank of 2 at present. The company is slated to release third-quarter results on Oct. 28.
Crane Company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%.
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