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The Zacks Consensus Estimate for the company’s fourth-quarter 2023 earnings has remained steady in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 12.9%.
The consensus estimate for the company’s fourth-quarter 2023 revenues is pegged at $913 million, suggesting growth of 5.9% from the year-ago quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at $1.57 per share, indicating 1.9% growth from the year-ago quarter’s reported number.
Let’s see how things are shaping up for Allegion this earnings season.
Factors to Note
ALLE’s Allegion Americas segment has been reaping the benefits from strength in electronics and software solutions end markets. For the fourth quarter, we expect the segment’s revenues to increase 6.5% year over year. Our estimate for the segment’s adjusted operating income indicates a decrease of 7.6% from the year-ago reported figure.
Allegion acquired Plano Group in January 2023, which expanded its Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. The Plano Group acquisition is likely to have supported the company’s fourth-quarter results. We expect Allegion’s total revenues to increase 5.9% from the year-ago reported figure.
However, the Allegion International segment has been exhibiting weakness due to decreasing volumes in the Global Portable Securities business. For 2023, the company expects the Allegion International segment’s organic revenues to decline 1-2% year over year.
The increasing cost of sales due to escalating raw material costs is likely to have dented ALLE’s bottom line in the to-be-reported quarter. For the quarter, we expect the company’s adjusted earnings to decline 6.9% from the year-ago reported number.
Given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have partially hurt Allegion's overseas business in the to-be-reported quarter.
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 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.57. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Allegion presently carries a Zacks Rank #4 (Sell).
Highlights of Q3 Earnings
Allegion’s third-quarter 2023 adjusted earnings of $1.94 per share beat the Zacks Consensus Estimate of $1.71. The bottom line improved 12.1% year over year. In the quarter under review, Allegion’s revenues were $917.9 million, increasing 0.5% from the year-ago quarter. The company’s revenues missed the consensus estimate of $919 million.
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.
The company is slated to release fourth-quarter 2023 results on Feb 20. Flowserve’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 27.3%.
Graphic Packaging Holding Company (GPK - Free Report) has an Earnings ESP of +2.04% and a Zacks Rank of 3, at present. The company is scheduled to release fourth-quarter 2023 results on Feb 20.
Graphic Packaging’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one, the average beat being 4.2%.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +3.46% and a Zacks Rank of 3. The company is slated to release fourth-quarter 2023 results on Feb 27.
Sealed Air’s earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, the average beat being 9.3%.
Image: Bigstock
What's in the Offing for Allegion (ALLE) This Earnings Season?
Allegion plc (ALLE - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 20, before market open.
The Zacks Consensus Estimate for the company’s fourth-quarter 2023 earnings has remained steady in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 12.9%.
The consensus estimate for the company’s fourth-quarter 2023 revenues is pegged at $913 million, suggesting growth of 5.9% from the year-ago quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at $1.57 per share, indicating 1.9% growth from the year-ago quarter’s reported number.
Let’s see how things are shaping up for Allegion this earnings season.
Factors to Note
ALLE’s Allegion Americas segment has been reaping the benefits from strength in electronics and software solutions end markets. For the fourth quarter, we expect the segment’s revenues to increase 6.5% year over year. Our estimate for the segment’s adjusted operating income indicates a decrease of 7.6% from the year-ago reported figure.
Allegion acquired Plano Group in January 2023, which expanded its Interflex portfolio and AWFM business with new capabilities in SaaS models and recurring revenue solutions. The Plano Group acquisition is likely to have supported the company’s fourth-quarter results. We expect Allegion’s total revenues to increase 5.9% from the year-ago reported figure.
However, the Allegion International segment has been exhibiting weakness due to decreasing volumes in the Global Portable Securities business. For 2023, the company expects the Allegion International segment’s organic revenues to decline 1-2% year over year.
The increasing cost of sales due to escalating raw material costs is likely to have dented ALLE’s bottom line in the to-be-reported quarter. For the quarter, we expect the company’s adjusted earnings to decline 6.9% from the year-ago reported number.
Given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have partially hurt Allegion's overseas business in the to-be-reported quarter.
Allegion PLC Price and Consensus
Allegion PLC price-consensus-chart | Allegion PLC Quote
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 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.57. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Allegion presently carries a Zacks Rank #4 (Sell).
Highlights of Q3 Earnings
Allegion’s third-quarter 2023 adjusted earnings of $1.94 per share beat the Zacks Consensus Estimate of $1.71. The bottom line improved 12.1% year over year. In the quarter under review, Allegion’s revenues were $917.9 million, increasing 0.5% from the year-ago quarter. The company’s revenues missed the consensus estimate of $919 million.
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.
Flowserve Corporation (FLS - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is slated to release fourth-quarter 2023 results on Feb 20. Flowserve’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 27.3%.
Graphic Packaging Holding Company (GPK - Free Report) has an Earnings ESP of +2.04% and a Zacks Rank of 3, at present. The company is scheduled to release fourth-quarter 2023 results on Feb 20.
Graphic Packaging’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one, the average beat being 4.2%.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +3.46% and a Zacks Rank of 3. The company is slated to release fourth-quarter 2023 results on Feb 27.
Sealed Air’s earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, the average beat being 9.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.