Security hardware provider Allegion (NYSE: ALLE) will be reporting earnings this Tuesday before market open. Here’s what you need to know.
Allegion met analysts’ revenue expectations last quarter, reporting revenues of $1.03 billion, up 9.3% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ adjusted operating income estimates.
Is Allegion a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Allegion’s revenue to grow 8.9% year on year, improving from the 5.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Allegion has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Allegion’s peers in the electrical systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. GE Vernova delivered year-on-year revenue growth of 16.3%, beating analysts’ expectations by 0.8%, and LSI reported revenues up 13.6%, topping estimates by 9%. GE Vernova traded up 16.2% following the results while LSI was also up 6.6%.
Read our full analysis of GE Vernova’s results here and LSI’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 15% on average over the last month. Allegion is up 2.3% during the same time and is heading into earnings with an average analyst price target of $173.17 (compared to the current share price of $146.13).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
