Insights Ahead: Allegion's Quarterly Earnings
Allegion (NYSE:ALLE) is gearing up to announce its quarterly earnings on Thursday, 2025-04-24. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Allegion will report an earnings per share (EPS) of $1.67.
The announcement from Allegion is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Earnings Track Record
During the last quarter, the company reported an EPS beat by $0.11, leading to a 0.55% increase in the share price on the subsequent day.
Here's a look at Allegion's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.75 | 1.98 | 1.84 | 1.45 |
| EPS Actual | 1.86 | 2.16 | 1.96 | 1.55 |
| Price Change % | 1.0% | -2.0% | 4.0% | -1.0% |
Market Performance of Allegion's Stock
Shares of Allegion were trading at $126.82 as of April 22. Over the last 52-week period, shares are up 2.97%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Insights on Allegion
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Allegion.
Analysts have provided Allegion with 5 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $134.8, suggesting a potential 6.29% upside.
Comparing Ratings with Competitors
This comparison focuses on the analyst ratings and average 1-year price targets of Owens-Corning, A.O. Smith and Builders FirstSource, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Owens-Corning, with an average 1-year price target of $196.6, suggesting a potential 55.02% upside.
- Analysts currently favor an Buy trajectory for A.O. Smith, with an average 1-year price target of $76.4, suggesting a potential 39.76% downside.
- Analysts currently favor an Buy trajectory for Builders FirstSource, with an average 1-year price target of $167.75, suggesting a potential 32.27% upside.
Summary of Peers Analysis
The peer analysis summary provides a snapshot of key metrics for Owens-Corning, A.O. Smith and Builders FirstSource, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Allegion | Neutral | 5.37% | $416.70M | 9.38% |
| Owens-Corning | Outperform | 23.26% | $799M | -4.82% |
| A.O. Smith | Buy | -7.66% | $338.10M | 5.77% |
| Builders FirstSource | Buy | -7.96% | $1.23B | 4.35% |
Key Takeaway:
Allegion ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity.
Get to Know Allegion Better
Allegion is a global security products company with a portfolio of leading brands such as Schlage, Von Duprin, and LCN. The Ireland-domiciled company was created via a spinoff transaction from Ingersoll-Rand in December 2013. In fiscal 2024, Allegion generated over 75% of sales in the United States. The company primarily competes with Sweden-based Assa Abloy, Switzerland-based Dormakaba, and US-based Fortune Brands Innovations.
Allegion: Financial Performance Dissected
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, Allegion showcased positive performance, achieving a revenue growth rate of 5.37% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Allegion's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.24% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 9.38%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.05%, the company showcases effective utilization of assets.
Debt Management: Allegion's debt-to-equity ratio stands notably higher than the industry average, reaching 1.33. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for Allegion visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.