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Allegion (ALLE) to Post Q1 Earnings: What's in the Cards?
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Allegion plc (ALLE - Free Report) is scheduled to release first-quarter 2022 results on Apr 26, before market open.
ALLE delivered better-than-expected results in each of the last four quarters, the average being 11.64%. Its fourth-quarter 2021 adjusted earnings of $1.11 per share surpassed the Zacks Consensus Estimate of $1.00 by 11%.
Image Source: Zacks Investment Research
In the past three months, shares of Allegion have lost 9.3% compared with the industry’s decline of 6.6%
Let’s delve deeper.
Factors at Play
Allegion is expected to have benefited from solid demand in its non-residential businesses, driven by a recovery in healthcare, education and commercial end markets in first-quarter 2022. Also, ALLE’s effective pricing policies and a healthy backlog level are likely to have driven its performance.
ALLE’s focus on investing in innovation and growth opportunities is likely to have positively impacted its operations in the first quarter of 2022. Its incremental investments in R&D are expected to have been beneficial in the first three months of 2022.
Acquisitions made by Allegion are likely to have impacted its top line positively in first-quarter 2022. The buyout of Yonomi (January 2021) is strengthening ALLE’s offerings of smart-home solutions. ALLE’s purchase of Astrum Benelux B.V. and WorkforceIT B.V. (July 2021) have been benefiting Interflex’s cloud and mobile solutions for a while.
However, over time, Allegion’s production capabilities have been affected by supply-chain woes, shortages of electronic chips and cost inflation. High costs and expenses might have depressed its margins and hit profitability in the to-be-reported quarter.
Given Allegion’s intention to further expand its global reach, its operations are subject to social and environmental risks, and forex woes. A stronger U.S. dollar might have hurt ALLE’s overseas businesses in first-quarter 2022.
The Zacks Consensus Estimate for ALLE’s first-quarter total revenues is pegged at $696 million, suggesting growth of 0.3% and a decline of 1.8% from the year-ago and quarter-ago reported numbers, respectively. The consensus estimate for earnings of 99 cents suggests a decline of 17.5% and 10.8% from the year-ago reported figure and on sequential basis, respectively.
Earnings Whispers
Our quantitative model does not predict a beat for Allegion this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you will see below.
Earnings ESP: Allegion has an Earnings ESP of -1.18%, as the Most Accurate Estimate is pegged at 98 cents, lower than the Zacks Consensus Estimate of 99 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Allegion carries a Zacks Rank #3 at present.
Stocks to Consider
Here are some companies worth considering as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Its earnings surprise in the last four quarters was 1.46%, on average, in the past 60 days. IDEX’s earnings estimates have increased 0.9% for 2022. IDEX’s shares have lost 11.1% in the past three months.
A. O. Smith Corporation (AOS - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank of 3, currently. AOS delivered a trailing four-quarter earnings surprise of 13.71%, on average.
Earnings estimates of AOS have decreased 0.3% for 2022 in the past 60 days. Its shares have declined 15.8% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has grown 19.2% in the past three months.
Image: Bigstock
Allegion (ALLE) to Post Q1 Earnings: What's in the Cards?
Allegion plc (ALLE - Free Report) is scheduled to release first-quarter 2022 results on Apr 26, before market open.
ALLE delivered better-than-expected results in each of the last four quarters, the average being 11.64%. Its fourth-quarter 2021 adjusted earnings of $1.11 per share surpassed the Zacks Consensus Estimate of $1.00 by 11%.
Image Source: Zacks Investment Research
In the past three months, shares of Allegion have lost 9.3% compared with the industry’s decline of 6.6%
Let’s delve deeper.
Factors at Play
Allegion is expected to have benefited from solid demand in its non-residential businesses, driven by a recovery in healthcare, education and commercial end markets in first-quarter 2022. Also, ALLE’s effective pricing policies and a healthy backlog level are likely to have driven its performance.
ALLE’s focus on investing in innovation and growth opportunities is likely to have positively impacted its operations in the first quarter of 2022. Its incremental investments in R&D are expected to have been beneficial in the first three months of 2022.
Acquisitions made by Allegion are likely to have impacted its top line positively in first-quarter 2022. The buyout of Yonomi (January 2021) is strengthening ALLE’s offerings of smart-home solutions. ALLE’s purchase of Astrum Benelux B.V. and WorkforceIT B.V. (July 2021) have been benefiting Interflex’s cloud and mobile solutions for a while.
However, over time, Allegion’s production capabilities have been affected by supply-chain woes, shortages of electronic chips and cost inflation. High costs and expenses might have depressed its margins and hit profitability in the to-be-reported quarter.
Given Allegion’s intention to further expand its global reach, its operations are subject to social and environmental risks, and forex woes. A stronger U.S. dollar might have hurt ALLE’s overseas businesses in first-quarter 2022.
The Zacks Consensus Estimate for ALLE’s first-quarter total revenues is pegged at $696 million, suggesting growth of 0.3% and a decline of 1.8% from the year-ago and quarter-ago reported numbers, respectively. The consensus estimate for earnings of 99 cents suggests a decline of 17.5% and 10.8% from the year-ago reported figure and on sequential basis, respectively.
Earnings Whispers
Our quantitative model does not predict a beat for Allegion this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you will see below.
Earnings ESP: Allegion has an Earnings ESP of -1.18%, as the Most Accurate Estimate is pegged at 98 cents, lower than the Zacks Consensus Estimate of 99 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Allegion PLC Price and EPS Surprise
Allegion PLC price-eps-surprise | Allegion PLC Quote
Zacks Rank: Allegion carries a Zacks Rank #3 at present.
Stocks to Consider
Here are some companies worth considering as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
IDEX Corporation (IEX - Free Report) has an Earnings ESP of +0.29% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Its earnings surprise in the last four quarters was 1.46%, on average, in the past 60 days. IDEX’s earnings estimates have increased 0.9% for 2022. IDEX’s shares have lost 11.1% in the past three months.
A. O. Smith Corporation (AOS - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank of 3, currently. AOS delivered a trailing four-quarter earnings surprise of 13.71%, on average.
Earnings estimates of AOS have decreased 0.3% for 2022 in the past 60 days. Its shares have declined 15.8% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has grown 19.2% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.