U.S. Markets closed
  • S&P Futures

    4,698.25
    -0.75 (-0.02%)
     
  • Dow Futures

    35,744.00
    -2.00 (-0.01%)
     
  • Nasdaq Futures

    16,386.25
    -6.00 (-0.04%)
     
  • Russell 2000 Futures

    2,268.80
    -1.00 (-0.04%)
     
  • Crude Oil

    72.68
    +0.32 (+0.44%)
     
  • Gold

    1,784.60
    -0.90 (-0.05%)
     
  • Silver

    22.41
    -0.03 (-0.12%)
     
  • EUR/USD

    1.1338
    -0.0006 (-0.0567%)
     
  • 10-Yr Bond

    1.5090
    +0.0290 (+1.96%)
     
  • Vix

    19.90
    -1.99 (-9.09%)
     
  • GBP/USD

    1.3202
    -0.0004 (-0.0330%)
     
  • USD/JPY

    113.7230
    -0.0140 (-0.0123%)
     
  • BTC-USD

    50,251.55
    -315.69 (-0.62%)
     
  • CMC Crypto 200

    1,313.12
    +8.01 (+0.61%)
     
  • FTSE 100

    7,337.05
    -2.85 (-0.04%)
     
  • Nikkei 225

    28,817.01
    -43.61 (-0.15%)
     

Allegion (ALLE) to Report Q2 Earnings: Is a Beat in the Cards?

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Allegion plc ALLE is slated to report second-quarter 2021 results on Jul 22, before market open.

The company delivered better-than-expected results in each of the last four quarters. Earnings surprise in the last four quarters was 25.16%, on average. Its first-quarter 2021 adjusted earnings of $1.20 per share surpassed the Zacks Consensus Estimate of $1.02 by 17.65%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

In the past three months, shares of Allegion have gained 4.5% compared with the industry’s growth of 8.5%.

Factors at Play

Allegion is expected to have benefited from the recovery of pandemic-stricken end markets, along with its product innovation efforts, in the second quarter. Growing popularity of the company’s Schlage and Interflex branded products is likely to have been beneficial.

Strength across Allegion’s residential businesses, driven by solid momentum across the new home construction and retail end markets, is likely to have supplemented its Americas segment’s top-line performance in the to-be-reported quarter. Also, solid demand environment across home builder markets and point-of-sales in the e-commerce channels might have boosted its performance. However, softness across the non-residential markets, owing to lower new construction activities and discretionary project delay might have dragged the segment’s performance. The Zacks Consensus Estimate for second-quarter 2021 revenues of the Americas segment is currently pegged at $495 million, suggesting an increase of 11.5% from the year-ago quarter’s reported number. The company’s International segment’s performance is likely to have been supported by strength in its Germanic, Global Portable Security and SimonsVoss businesses.

Allegion’s acquisition of Yonomi (January 2021) has been enabling it to further develop its smart-home solutions through major brands like Schlage. This is also likely to get reflected in its second-quarter results. The company’s pricing and productivity initiatives, along with restructuring actions undertaken, are also anticipated to have boosted its performance.

However, Allegion’s investments related to product development, restructuring actions and integration of acquired asset might have adversely impacted its earnings in the second quarter.

The consensus estimate for the company’s second-quarter total revenues is currently pegged at $675 million, suggesting 14.4% increase from the year-ago quarter’s reported number. The consensus estimate for earnings of $1.29 suggests an improvement of 40.2% on a year-over-year basis.

Earnings Whispers

Our proven model predicts an earnings beat for Allegion this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

This is the case here as given below:

Earnings ESP: The company has an Earnings ESP of +2.33% as the Most Accurate Estimate is pegged at $1.32, higher than the Zacks Consensus Estimate of $1.29.

Allegion plc Price and EPS Surprise

Allegion PLC Price and EPS Surprise
Allegion PLC Price and EPS Surprise

Allegion plc price-eps-surprise | Allegion plc Quote

Zacks Rank: Allegion carries a Zacks Rank #3.

Other Key Picks

Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:

The Middleby Corporation MIDD has an Earnings ESP of +0.23% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

A. O. Smith Corporation AOS has an Earnings ESP of +3.53% and a Zacks Rank of 2, at present.

Johnson Controls International plc JCI has an Earnings ESP of +0.75% and a Zacks Rank of 3.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Johnson Controls International plc (JCI) : Free Stock Analysis Report

A. O. Smith Corporation (AOS) : Free Stock Analysis Report

The Middleby Corporation (MIDD) : Free Stock Analysis Report

Allegion PLC (ALLE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research