Earnings Preview: What To Expect From Allegion's Report

With a market cap of $13.1 billion, Allegion plc (ALLE) operates in the security products and solutions industry. Based in Dublin, Ireland, the company offers a broad range of mechanical and electronic security systems, catering to residential, institutional, and commercial markets worldwide. It is expected to announce its Q3 earnings before the market opens on Thursday, Oct. 24.

Ahead of the event, analysts expect the security device maker to report a profit of $1.93 per share, slightly down from $1.94 per share reported in the year-ago quarter. However, the company has consistently surpassed Wall Street’s EPS projections in the past four quarters. ALLE exceeded the consensus estimates by 10.7% in Q2 2024.

In fiscal 2024, analysts expect ALLE to report an EPS of $7.26, up 4.3% from $6.96 in fiscal 2023. 

ALLE stock is up 18.5% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 22.3% gains and the Industrial Select Sector SPDR Fund’s (XLI) 22% returns over the same time frame.

Shares of Allegion rose 3.9% following its Q2 earnings release on Jul. 24 due to the company's adjusted EPS of $1.96, which surpassed analysts' estimate of $1.77 and showed 11.4% year-over-year growth. Revenues of $965.6 million also beat expectations, driven by strong price realization and volume growth, along with a 5.8% year-over-year increase. Additionally, the company raised its 2024 earnings outlook, projecting higher adjusted EPS of $7.15 - $7.30, boosting investor confidence.

The consensus opinion on Allegion stock is cautious, with an overall “Hold” rating. Out of the seven analysts covering the stock, one recommends “Strong Buy,” four suggest “Hold,” one indicates “Moderate Sell,” and one has a “Strong Sell” rating. Currently, ALLE is trading above the average analyst price target of $139.33. 

More Stock Market News from Barchart

• Surging AI Power Demand Meets America's Largest Electric Utility Stock
• 1 Outperforming AI Stock Under $10 With 40% Upside Potential
• If You’re Going to Bet on Walgreens’ (WBA) 25% Yield, There’s Only One Option to Consider
• Alphabet Stock Looks Cheap - Analysts Raising Price Targets

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.