In This Article:
Allegion plc ALLE is scheduled to release first-quarter 2025 results on April 24, before market open.
The Zacks Consensus Estimate for ALLE’s first-quarter revenues is pegged at $931.6 million, indicating growth of 4.2% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $1.68 per share, which has remained steady in the past 30 days. The figure indicates growth of 8.4% from the year-ago quarter's figure.
The company delivered better-than-expected results in each of the trailing four quarters, the earnings surprise being 9.9% on average. In the last reported quarter, its bottom line beat the consensus estimate by 6.9%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Let us see how things have shaped up for Allegion this earnings season.
Factors Likely to Have Shaped ALLE’s Quarterly Performance
ALLE’s Allegion Americas segment’s first-quarter performance is expected to have benefited from stable demand across end markets like education, healthcare, government, hospitality and retail end markets. The increase in demand for residential and non-residential products is also anticipated to have augmented its top-line performance in the first quarter. We expect revenues from the segment to increase 5.5% year over year to $748.5 million.
Increased adoption of advanced technologies and solutions in the electronics security products market, such as wireless locks and mobile-enabled smart locks, is expected to have boosted the Allegion International segment’s performance in the first quarter.
Allegion has always been focused on expanding its product offerings and market presence through buyouts. In June 2024, the company acquired Krieger Specialty Products. The addition of Krieger’s expertise in specialty solutions enabled ALLE to strengthen its door and frame portfolio. Also, in the same month, it purchased Unicel Architectural Corp. The inclusion of Unicel’s proficiency in glass and building envelope solutions expanded its product portfolio within the non-residential business. Both the acquired businesses have been incorporated into the Allegion Americas segment.
Its acquisition of Dorcas in March 2024 strengthened its security products portfolio and boosted its presence in the healthcare and education sectors. The buyouts are expected to have boosted ALLE’s top line in the quarter.
However, rising operating costs, owing to increased material costs and investments in new products, channel development and growth initiatives, are likely to have impacted the company’s bottom line. We expect ALLE’s cost of sales to increase 4.4% year over year and adjusted operating margin to decline 10 basis points to 21.1% in the first quarter.
Also, given the company’s extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Allegion's overseas business.