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The Zacks Consensus Estimate for second-quarter earnings has remained steady in the past 30 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 8.6%.
The consensus estimate for revenues is pegged at $944.3 million, indicating growth of 3.5% from the year-ago quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at $1.77 per share, indicating a 0.6% increase from the year-ago quarter’s reported number.
Let’s see how things have shaped up for Allegion this earnings season.
Strengthening demand for electronic security products in the overseas markets, driven by growing awareness about the security and safety of people and infrastructure, is expected to have driven Allegion International segment’s performance. We expect revenues from the segment to increase 4.1% year over year to $192.9 million.
Allegion has always been focused on expanding its product offerings and market presence through buyouts. 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.
Also, the company acquired Plano Group (in January 2023), which expanded its Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. We expect acquisitions to have boosted the company’s revenues by 1.1% in the second quarter.
However, the company has been witnessing softness in the Allegion Americas segment due to lower demand for security products and solutions in both residential and non-residential markets. Weakness in the U.S. housing market, owing to high interest rates, is likely to have affected the demand for its security products and solutions. This, in turn, is likely to have affected the top-line performance of the segment.
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: Allegion has an Earnings ESP of -1.13% as the Most Accurate Estimate is pegged at $1.75 per share, which is lower than the Zacks Consensus Estimate of $1.77. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Allegion presently carries a Zacks Rank of 2.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat in the upcoming release.
The company is slated to release second-quarter results on Jul 24. MSA’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.4%.
Johnson Controls International (JCI - Free Report) has an Earnings ESP of +1.55% and a Zacks Rank of 3. The company is slated to release third-quarter fiscal 2024 results on Aug 7.
Johnson Controls’ earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters. Its earnings came in line and missed the mark, respectively, in the other two quarters, the average beat being 0.6%.
A. O. Smith Corporation (AOS - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank of 3, at present. It is slated to release second-quarter results on Jul 23.
A. O. Smith’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.7%.
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Allegion (ALLE) to Report Q2 Earnings: What's in the Offing?
Allegion plc (ALLE - Free Report) is scheduled to release second-quarter 2024 results on Jul 24, before market open.
The Zacks Consensus Estimate for second-quarter earnings has remained steady in the past 30 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 8.6%.
The consensus estimate for revenues is pegged at $944.3 million, indicating growth of 3.5% from the year-ago quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at $1.77 per share, indicating a 0.6% increase from the year-ago quarter’s reported 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
Strengthening demand for electronic security products in the overseas markets, driven by growing awareness about the security and safety of people and infrastructure, is expected to have driven Allegion International segment’s performance. We expect revenues from the segment to increase 4.1% year over year to $192.9 million.
Allegion has always been focused on expanding its product offerings and market presence through buyouts. 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.
Also, the company acquired Plano Group (in January 2023), which expanded its Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. We expect acquisitions to have boosted the company’s revenues by 1.1% in the second quarter.
However, the company has been witnessing softness in the Allegion Americas segment due to lower demand for security products and solutions in both residential and non-residential markets. Weakness in the U.S. housing market, owing to high interest rates, is likely to have affected the demand for its security products and solutions. This, in turn, is likely to have affected the top-line performance of the segment.
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: Allegion has an Earnings ESP of -1.13% as the Most Accurate Estimate is pegged at $1.75 per share, which is lower than the Zacks Consensus Estimate of $1.77. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Allegion presently carries a Zacks Rank of 2.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat in the upcoming release.
MSA Safety Incorporated (MSA - Free Report) has an Earnings ESP of +1.52% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is slated to release second-quarter results on Jul 24. MSA’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.4%.
Johnson Controls International (JCI - Free Report) has an Earnings ESP of +1.55% and a Zacks Rank of 3. The company is slated to release third-quarter fiscal 2024 results on Aug 7.
Johnson Controls’ earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters. Its earnings came in line and missed the mark, respectively, in the other two quarters, the average beat being 0.6%.
A. O. Smith Corporation (AOS - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank of 3, at present. It is slated to release second-quarter results on Jul 23.
A. O. Smith’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.