Financial News

Allegion (ALLE) Q3 Earnings: What To Expect

ALLE Cover Image

Security hardware provider Allegion (NYSE:ALLE) will be reporting earnings tomorrow before market open. Here’s what you need to know.

Allegion beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $965.6 million, up 5.8% year on year. It was a strong quarter for the company, with optimistic earnings guidance for the full year and a decent beat of analysts’ operating margin estimates.

Is Allegion a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Allegion’s revenue to grow 5.7% year on year to $970 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.98 per share.

Allegion Total Revenue

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 twice over the last two years.

Looking at Allegion’s peers in the electrical equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Acuity Brands delivered year-on-year revenue growth of 2.2%, meeting analysts’ expectations, and Vicor reported a revenue decline of 13.6%, topping estimates by 9.3%. Acuity Brands traded up 9% following the results.

Read our full analysis of Acuity Brands’s results here and Vicor’s results here.

Investors in the electrical equipment segment have had steady hands going into earnings, with share prices flat over the last month. Allegion is up 4.7% during the same time and is heading into earnings with an average analyst price target of $145.19 (compared to the current share price of $150.60).

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