Security hardware provider Allegion (NYSE:ALLE) will be reporting results this Thursday before the bell. Here’s what to look for.
Allegion beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $1.02 billion, up 5.8% year on year. It was a very strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and a solid beat 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, analysts are expecting Allegion’s revenue to grow 8% year on year to $1.04 billion, improving from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.24 per share.
Analysts covering the company have generally 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 17.1%, missing analysts’ expectations by 1.5%, and Vicor reported revenues up 18.5%, topping estimates by 15.7%. Acuity Brands traded up 3.3% 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 up 1.8% on average over the last month. Allegion’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $180.73 (compared to the current share price of $179.47).
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