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The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings has increased 0.7% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.3%.
Let’s see how things are shaping up for Allegion this earnings season.
Factors to Note
Strengthening demand in end markets and effective pricing are expected to have benefited Allegion’s first-quarter 2023 performance. Strength in non-residential, residential and electronics end markets is likely to have supported the Allegion Americas segment. The Zacks Consensus Estimate for Allegion Americas indicates a 26.9% jump from the year-ago reported number. We expect Allegion Americas’ revenues to increase 28% from the first-quarter 2022 reported number.
The company’s Plano Group acquisition and Access Technologies buyout are likely to have augmented its revenues in the to-be-reported quarter. The Zacks Consensus Estimate for total revenues in the first quarter indicates a 17.5% increase from the year-ago reported number. We expect first-quarter revenues to climb 17.7% from the year-ago period.
However, softness in end markets is likely to have affected the Allegion International segment’s growth. The Zacks Consensus Estimate for Allegion International segment’s revenues suggests a 9.7% drop from the year-ago reported number. We expect Allegion International’s revenues to decline 10.2% year over year.
Labor, material and freight-related cost inflation are likely to have dented margins in the to-be-reported quarter. Supply-chain disruptions, including shortage of electronic chips and other parts, are likely to have weighed on ALLE’s performance in the quarter to be reported. Given the company’s substantial international presence, foreign-currency headwinds are likely to have weighed on the top line in the first quarter.
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 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 $1.35. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: ALLE carries a Zacks Rank of 2.
Highlights of Q4 Earnings
Allegion reported fourth-quarter 2022 adjusted earnings of $1.60 per share, surpassing the Zacks Consensus Estimate of $1.37. The bottom line increased 44.1% from the year-ago period’s $1.11. Total revenues of $861.5 million jumped 21.5% year over year. Its revenues exceeded the Zacks Consensus Estimate of $849 million. Organic sales in the quarter increased 11.4%, driven by robust price realization and strong volume in the Allegion Americas businesses.
Stocks to Consider
Here are some companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Caterpillar’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 9%.
A. O. Smith Corporation (AOS - Free Report) has an Earnings ESP of +5.78% and a Zacks Rank of 2. The company is scheduled to release first-quarter 2023 results on Apr 27.
AOS’ earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while matching in one, the average beat being 3.2%.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank of 3. The company is slated to release first-quarter 2023 results on May 2.
Illinois Tool’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 0.9%.
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Allegion (ALLE) Set to Report Q1 Earnings: What's in Store?
Allegion plc (ALLE - Free Report) is scheduled to release first-quarter 2023 results on Apr 26, before market open.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings has increased 0.7% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.3%.
Let’s see how things are shaping up for Allegion this earnings season.
Factors to Note
Strengthening demand in end markets and effective pricing are expected to have benefited Allegion’s first-quarter 2023 performance. Strength in non-residential, residential and electronics end markets is likely to have supported the Allegion Americas segment. The Zacks Consensus Estimate for Allegion Americas indicates a 26.9% jump from the year-ago reported number. We expect Allegion Americas’ revenues to increase 28% from the first-quarter 2022 reported number.
The company’s Plano Group acquisition and Access Technologies buyout are likely to have augmented its revenues in the to-be-reported quarter. The Zacks Consensus Estimate for total revenues in the first quarter indicates a 17.5% increase from the year-ago reported number. We expect first-quarter revenues to climb 17.7% from the year-ago period.
However, softness in end markets is likely to have affected the Allegion International segment’s growth. The Zacks Consensus Estimate for Allegion International segment’s revenues suggests a 9.7% drop from the year-ago reported number. We expect Allegion International’s revenues to decline 10.2% year over year.
Labor, material and freight-related cost inflation are likely to have dented margins in the to-be-reported quarter. Supply-chain disruptions, including shortage of electronic chips and other parts, are likely to have weighed on ALLE’s performance in the quarter to be reported. Given the company’s substantial international presence, foreign-currency headwinds are likely to have weighed on the top line in the first quarter.
Allegion PLC Price and EPS Surprise
Allegion PLC price-eps-surprise | Allegion PLC Quote
Earnings Whispers
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 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 $1.35. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: ALLE carries a Zacks Rank of 2.
Highlights of Q4 Earnings
Allegion reported fourth-quarter 2022 adjusted earnings of $1.60 per share, surpassing the Zacks Consensus Estimate of $1.37. The bottom line increased 44.1% from the year-ago period’s $1.11. Total revenues of $861.5 million jumped 21.5% year over year. Its revenues exceeded the Zacks Consensus Estimate of $849 million. Organic sales in the quarter increased 11.4%, driven by robust price realization and strong volume in the Allegion Americas businesses.
Stocks to Consider
Here are some companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Caterpillar (CAT - Free Report) , which has an Earnings ESP of +2.54% and a Zacks Rank of 3, is scheduled to release first-quarter 2023 earnings numbers on Apr 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
Caterpillar’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 9%.
A. O. Smith Corporation (AOS - Free Report) has an Earnings ESP of +5.78% and a Zacks Rank of 2. The company is scheduled to release first-quarter 2023 results on Apr 27.
AOS’ earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while matching in one, the average beat being 3.2%.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank of 3. The company is slated to release first-quarter 2023 results on May 2.
Illinois Tool’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 0.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.