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Allegion (ALLE) to Post Q4 Earnings: What's in the Cards?
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Allegion plc (ALLE - Free Report) is slated to report fourth-quarter 2021 results on Feb 15, before market open.
The company delivered better-than-expected results in each of the last four quarters. Earnings surprise was 15.72%, on average. Its third-quarter 2021 adjusted earnings of $1.56 per share surpassed the Zacks Consensus Estimate of $1.35 by 15.56%.
Image Source: Zacks Investment Research
In the past three months, shares of Allegion have lost 8.9% compared with the industry’s decline of 10.2%.
Factors at Play
Allegion is expected to have benefited from a strong demand environment in its residential businesses, backed by strength across the new home construction and retail end markets in the fourth quarter. Solid momentum in the company’s non-residential business, driven by improvement in demand for discretionary projects and a healthy backlog level, is likely to have driven its performance. Also, strength in its SimonsVoss, Interflex and Global Portable Security businesses are likely to have been tailwinds.
The company’s investments in product innovation, coupled with its focus on operational execution and generating healthy free cash flow, are likely to have been beneficial in the quarter. Also, its effective pricing actions and restructuring actions are anticipated to have helped it maintain a healthy margin performance.
Allegion has expanded its business, strengthened its product offerings, and gained access to new customers and regions through acquisitions. Some of the notable buyouts made by the company over the past few quarters are the Yonomi buyout, and certain assets of Astrum Benelux B.V. and WorkforceIT B.V. The impacts of strength across its acquired assets are likely to get reflected in the to-be-reported quarter’s results.
However, challenges related to the scarcity of materials and labor, as well as shortages of electronic components and other parts, are expected to have impacted its production capabilities. This is likely to have adversely impacted its top-line performance in the fourth quarter.
Allegion’s investments associated with product development, restructuring actions and activities related to the integration of acquired assets are expected to have hurt its earnings in the fourth quarter. For 2021, it expects investments related to restructuring actions and the integration of acquired asset activities to hurt earnings by 15-20 cents.
The Zacks Consensus Estimate for the company’s fourth-quarter total revenues is pegged at $676 million, suggesting 7% and 5.7% decreases from the year-ago and quarter-ago reported numbers, respectively. The consensus estimate for earnings of $1.00 suggests declines of 32.9% and 35.9% on a year-over-year and sequential basis, respectively.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Allegion has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $1.00.
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Zacks Consensus Estimate for Middleby’s earnings is pegged at $2.07 per share for the fourth quarter of 2021. MIDD’s shares have gained 6.2% in the past three months.
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +6.45% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Chart Industries’ earnings is pegged at 67 cents per share for fourth-quarter 2021. GTLS’ shares have lost 36.4% in the past three months.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +1.43% and a Zacks Rank of 2, currently.
The Zacks Consensus Estimate for Sealed Air’s earnings is pegged at $1.14 per share for the fourth quarter of 2021. SEE’s shares have lost 0.4% in the past three months.
Image: Bigstock
Allegion (ALLE) to Post Q4 Earnings: What's in the Cards?
Allegion plc (ALLE - Free Report) is slated to report fourth-quarter 2021 results on Feb 15, before market open.
The company delivered better-than-expected results in each of the last four quarters. Earnings surprise was 15.72%, on average. Its third-quarter 2021 adjusted earnings of $1.56 per share surpassed the Zacks Consensus Estimate of $1.35 by 15.56%.
In the past three months, shares of Allegion have lost 8.9% compared with the industry’s decline of 10.2%.
Factors at Play
Allegion is expected to have benefited from a strong demand environment in its residential businesses, backed by strength across the new home construction and retail end markets in the fourth quarter. Solid momentum in the company’s non-residential business, driven by improvement in demand for discretionary projects and a healthy backlog level, is likely to have driven its performance. Also, strength in its SimonsVoss, Interflex and Global Portable Security businesses are likely to have been tailwinds.
The company’s investments in product innovation, coupled with its focus on operational execution and generating healthy free cash flow, are likely to have been beneficial in the quarter. Also, its effective pricing actions and restructuring actions are anticipated to have helped it maintain a healthy margin performance.
Allegion has expanded its business, strengthened its product offerings, and gained access to new customers and regions through acquisitions. Some of the notable buyouts made by the company over the past few quarters are the Yonomi buyout, and certain assets of Astrum Benelux B.V. and WorkforceIT B.V. The impacts of strength across its acquired assets are likely to get reflected in the to-be-reported quarter’s results.
However, challenges related to the scarcity of materials and labor, as well as shortages of electronic components and other parts, are expected to have impacted its production capabilities. This is likely to have adversely impacted its top-line performance in the fourth quarter.
Allegion’s investments associated with product development, restructuring actions and activities related to the integration of acquired assets are expected to have hurt its earnings in the fourth quarter. For 2021, it expects investments related to restructuring actions and the integration of acquired asset activities to hurt earnings by 15-20 cents.
The Zacks Consensus Estimate for the company’s fourth-quarter total revenues is pegged at $676 million, suggesting 7% and 5.7% decreases from the year-ago and quarter-ago reported numbers, respectively. The consensus estimate for earnings of $1.00 suggests declines of 32.9% and 35.9% on a year-over-year and sequential basis, respectively.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Allegion has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $1.00.
Allegion plc Price and EPS Surprise
Allegion plc price-eps-surprise | Allegion plc Quote
Zacks Rank: The company carries a Zacks Rank #3.
Key Picks
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Middleby Corporation (MIDD - Free Report) has an Earnings ESP of +3.18% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Middleby’s earnings is pegged at $2.07 per share for the fourth quarter of 2021. MIDD’s shares have gained 6.2% in the past three months.
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +6.45% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Chart Industries’ earnings is pegged at 67 cents per share for fourth-quarter 2021. GTLS’ shares have lost 36.4% in the past three months.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +1.43% and a Zacks Rank of 2, currently.
The Zacks Consensus Estimate for Sealed Air’s earnings is pegged at $1.14 per share for the fourth quarter of 2021. SEE’s shares have lost 0.4% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.