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The Zacks Consensus Estimate for ALLE’s third-quarter earnings has been revised downward by 0.4% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 9.4%.
Let’s see how things are shaping up for Allegion this earnings season.
Factors to Note
Robust demand across end markets is expected to have driven Allegion’s performance in the third quarter. Also, effective pricing might have benefited the company’s performance in the quarter.
Allegion’s acquisition of Stanley Black & Decker, Inc.’s Access Technologies Business in July 2022 has enhanced its access, egress and access control solutions offerings. This acquisition is expected to have contributed to ALLE’s top-line growth in the third quarter.
However, material and freight-related cost inflation and labor shortages are expected to have hurt the company’s performance in the to-be-reported quarter. Also, supply-chain woes, mainly for shortages of electronic chips and other parts, might have affected ALLE’s top-line performance in the quarter.
Given Allegion’s expansion into international markets, a stronger U.S. dollar might have adversely impacted its overseas business performance in the quarter. The Zacks Consensus Estimate for ALLE’s revenues is pegged at $873 million for the third quarter, suggesting a 21.8% increase from the year-ago quarter’s reported number. Earnings estimates are pegged at $1.45, indicating a decrease of 7.1% from the year-ago reported figure.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Allegion this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Allegion has an Earnings ESP of +0.35%. You can uncover the best stocks with our Earnings ESP Filter.
Zacks Rank: Allegion carries a Zacks Rank #4 (Sell).
Highlights of Q2 Earnings
Allegion reported better-than-expected results for the second quarter of 2022. Its earnings surpassed the Zacks Consensus Estimate by 3% and its sales beat the same by 0.4%. Adjusted earnings in the quarter under review were $1.37 per share, surpassing the Zacks Consensus Estimate of $1.33. The bottom line increased 3.8% from the year-ago period’s figure of $1.32. In the quarter under review, Allegion’s revenues were $773.1 million, reflecting growth of 3.5% from the year-ago quarter.
Stocks to Consider
Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Sonoco Products Company (SON - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #3 at present. SON is slated to release third-quarter 2022 results on Oct 31.
Sonoco’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 4.1%.
Emerson Electric Co. (EMR - Free Report) currently has an Earnings ESP of +0.81% and a Zacks Rank of 3. EMR is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 6%.
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Will Cost Headwinds Dampen Allegion's (ALLE) Q3 Earnings?
Allegion plc (ALLE - Free Report) is scheduled to release third-quarter 2022 results on Oct 27, before market open.
The Zacks Consensus Estimate for ALLE’s third-quarter earnings has been revised downward by 0.4% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 9.4%.
Let’s see how things are shaping up for Allegion this earnings season.
Factors to Note
Robust demand across end markets is expected to have driven Allegion’s performance in the third quarter. Also, effective pricing might have benefited the company’s performance in the quarter.
Allegion’s acquisition of Stanley Black & Decker, Inc.’s Access Technologies Business in July 2022 has enhanced its access, egress and access control solutions offerings. This acquisition is expected to have contributed to ALLE’s top-line growth in the third quarter.
However, material and freight-related cost inflation and labor shortages are expected to have hurt the company’s performance in the to-be-reported quarter. Also, supply-chain woes, mainly for shortages of electronic chips and other parts, might have affected ALLE’s top-line performance in the quarter.
Given Allegion’s expansion into international markets, a stronger U.S. dollar might have adversely impacted its overseas business performance in the quarter. The Zacks Consensus Estimate for ALLE’s revenues is pegged at $873 million for the third quarter, suggesting a 21.8% increase from the year-ago quarter’s reported number. Earnings estimates are pegged at $1.45, indicating a decrease of 7.1% from the year-ago reported figure.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Allegion this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Allegion has an Earnings ESP of +0.35%. You can uncover the best stocks with our Earnings ESP Filter.
Allegion PLC Price, Consensus and EPS Surprise
Allegion PLC price-consensus-eps-surprise-chart | Allegion PLC Quote
Zacks Rank: Allegion carries a Zacks Rank #4 (Sell).
Highlights of Q2 Earnings
Allegion reported better-than-expected results for the second quarter of 2022. Its earnings surpassed the Zacks Consensus Estimate by 3% and its sales beat the same by 0.4%. Adjusted earnings in the quarter under review were $1.37 per share, surpassing the Zacks Consensus Estimate of $1.33. The bottom line increased 3.8% from the year-ago period’s figure of $1.32. In the quarter under review, Allegion’s revenues were $773.1 million, reflecting growth of 3.5% from the year-ago quarter.
Stocks to Consider
Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Sonoco Products Company (SON - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #3 at present. SON is slated to release third-quarter 2022 results on Oct 31.
Sonoco’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 4.1%.
Emerson Electric Co. (EMR - Free Report) currently has an Earnings ESP of +0.81% and a Zacks Rank of 3. EMR is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.