Allegion plc Set to Announce Q3 Earnings Amid Mixed Analyst Sentiment
Analysts Predict Slight Decline in Profit
With a market cap of $13.1 billion, Allegion plc (ALLE) operates in the security products and solutions sector from its base in Dublin, Ireland. The company provides a wide variety of mechanical and electronic security systems for residential, institutional, and commercial markets around the globe. Investors will be watching closely as the firm is set to release its Q3 earnings before the start of trading on Thursday, Oct. 24.
Expected Earnings and Historical Performance
Leading up to the earnings report, analysts expect the security device manufacturer to announce a profit of $1.93 per share, a small drop from the $1.94 per share reported one year ago. Notably, Allegion has exceeded Wall Street’s EPS forecasts in each of the past four quarters, achieving a remarkable 10.7% beat over consensus estimates in Q2 2024.
This year, analysts anticipate that ALLE will deliver an EPS of $7.26, marking a 4.3% increase from $6.96 in fiscal 2023.
Stock Performance Compared to Industry
ALLE stock has risen 18.5% year to date, which is lower than the S&P 500 Index’s ($SPX) 22.3% gain and the Industrial Select Sector SPDR Fund’s (XLI) 22% return during the same period.
Recent Earnings Boost Investor Confidence
Shares of Allegion climbed 3.9% after the company’s Q2 earnings release on July 24. The firm reported an adjusted EPS of $1.96, surpassing the analysts’ expectation of $1.77 and reflecting an impressive 11.4% increase year-over-year. With revenues at $965.6 million, also above forecasts, this growth was attributed to effective pricing strategies and increased sales volume, alongside a 5.8% year-over-year rise. Additionally, the company elevated its earnings forecast for 2024, now estimating adjusted EPS between $7.15 and $7.30, which has positively impacted investor confidence.
Cautious Analyst Outlook on ALLE Stock
The prevailing consensus regarding Allegion shares leans toward caution, reflected in an overall “Hold” rating. Among the seven analysts watching the stock, one recommends “Strong Buy,” four advise “Hold,” one suggests “Moderate Sell,” and one rates it as a “Strong Sell.” Currently, ALLE is trading above the average analyst price target of $139.33.
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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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
