Latest news with #AllegionAmericas
Globe and Mail
22-07-2025
- Business
- Globe and Mail
Allegion Gears Up to Post Q2 Earnings: Here's What to Expect
Allegion plc ALLE is scheduled to release second-quarter 2025 results on July 24, before market open. The Zacks Consensus Estimate for ALLE's second-quarter revenues is pegged at $1 billion, indicating growth of 3.7% from the prior-year quarter's figure. The consensus mark for earnings is pinned at $2 per share, which has increased a penny in the past 30 days. The figure indicates growth of 2% 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 10.1% on average. In the last reported quarter, its bottom line beat the consensus estimate by 10.7%. 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 second-quarter performance is expected to have benefited from stable demand across end markets like education, healthcare, government, hospitality and retail. The increase in demand for non-residential products is also anticipated to have augmented its top-line performance in the quarter. We expect revenues from the segment to increase 4.1% year over year to $801.9 million. An increase in demand for electronic security products, driven by growing awareness about the security and safety of people and infrastructure, is expected to have boosted the Allegion International segment's performance in the second quarter. Despite this, challenges in some European regions are likely to have hurt the segment's performance. We expect the segment's revenues to decrease 4.5% from the year-ago quarter to $186.2 million. Allegion has always been focused on expanding its product offerings and market presence through buyouts. The company acquired Lemaar Pty Ltd (Lemaar) in March 2025, enhancing its security and accessibility portfolio in Australia. In February 2025, ALLE acquired Next Door Company, which expanded its doors and frames portfolio. 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. The buyouts are expected to have boosted Allegion'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 2.4% year over year to $550.2 million and the adjusted operating margin to decline 50 basis points to 23.2% in the second 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. Earnings Whispers Our proven model does not conclusively predict an earnings beat for ALLE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below. Earnings ESP: ALLE has an Earnings ESP of -0.63% as the Most Accurate Estimate is pegged at $1.99 per share, which is lower than the Zacks Consensus Estimate of $2. You can uncover the best stocks before they're reported with our Earnings ESP Filter. Zacks Rank: ALLE currently carries a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here. Stocks to Consider Here are some companies within the broader Industrial Products sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle. Illinois Tool Works Inc. ITW has an Earnings ESP of +1.44% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 30. Illinois Tool's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3%. Eaton Corporation plc ETN has an Earnings ESP of +0.39% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter 2025 results on Aug. 5. Eaton's earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 1.9%. Emerson Electric Co. EMR has an Earnings ESP of +0.46% and a Zacks Rank of 3 at present. The company is slated to release third-quarter fiscal 2025 (ended June 2025) results on Aug. 6. Emerson's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.4%. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illinois Tool Works Inc. (ITW): Free Stock Analysis Report Emerson Electric Co. (EMR): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report Allegion PLC (ALLE): Free Stock Analysis Report
Yahoo
05-06-2025
- Business
- Yahoo
Allegion Boosts Product Portfolio With the Acquisition of Novas
Allegion plc ALLE recently acquired Nova Hardware Pty Ltd (Novas) through one of its subsidiaries. The financial terms of the transaction have been kept under in Victoria, Australia, Novas is engaged in designing and selling door hardware products, including hinges, mechanical and electronic locks, pulls and levers, and others. The company's products are sold to building developers, architects and builders. The latest buyout is in sync with Allegion's policy of acquiring businesses to expand its market share and customer base. The inclusion of Novas' expertise in door hardware and master keying solutions will enable ALLE to boost its door hardware portfolio. Also, Novas' strong presence in the Australian market will help Allegion to strengthen its position in the multifamily and commercial end will be incorporated into the company's Allegion International segment and will be led by its senior vice president, Tim are an essential aspect of Allegion's growth strategy. The company is trying to improve its long-term results by focusing on strategic acquisitions and regular innovations. In April 2025, ALLE acquired Trimco Hardware (Trimco), along with its brands and various assets, through one of its subsidiaries. The inclusion of Trimco's expertise in specialty solutions, coupled with its strong innovation capabilities, enabled Allegion to boost its door and frame portfolio within the Allegion Americas segment. Allegion acquired Lemaar Pty Ltd (Lemaar) in March 2025. This acquisition boosted ALLE's security and accessibility portfolio in Australia. The acquired company has been incorporated into the Allegion International segment. In February 2025, Allegion acquired Next Door Company, which expanded its doors and frames portfolio. Next Door has been incorporated into the Allegion Americas segment. Allegion is benefiting from strength in the Allegion Americas segment, driven by an increase in demand for non-residential products across end markets like education, hospitality and retail. Growing awareness about the security and safety of people and infrastructure across the world is driving the International currently carries a Zacks Rank #3 (Hold). In the year-to-date period, the stock has gained 5.7% compared with the industry's 4.6% growth. Image Source: Zacks Investment Research However, the rising cost of sales due to higher material costs and increasing selling and administrative expenses poses a threat to ALLE's bottom line. Some better-ranked companies are discussed below:Life360, Inc. LIF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks delivered a trailing four-quarter average earnings surprise of 425%. In the past 60 days, the Zacks Consensus Estimate for Life360's 2025 earnings has increased 9.1%. Holdings, Inc. ALRM presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 15.7%.The Zacks Consensus Estimate for ALRM's 2025 earnings has increased 1.3% in the past 60 Inc. BWEN presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 61.1%.In the past 60 days, the consensus estimate for BWEN's 2025 earnings has increased 14.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadwind Energy, Inc. (BWEN) : Free Stock Analysis Report Allegion PLC (ALLE) : Free Stock Analysis Report Holdings, Inc. (ALRM) : Free Stock Analysis Report Life360, Inc. (LIF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Allegion Exhibits Strong Prospects Despite Persisting Headwinds
Allegion plc ALLE is benefiting from strong momentum across its segments. Stable demand across end markets like education, healthcare, government, hospitality and retail and the acquisitions of Next Door Company and Trimco are driving the Allegion Americas segment. The increase in demand for non-residential products also bodes well. An increase in demand for electronic security products, driven by growing awareness about the security and safety of people and infrastructure, is aiding the Allegion International segment. Positive price realization and the acquisition of Lemaar Pty also bode well for the solidified its product portfolio and leveraged business opportunities through asset additions. In April 2025, the company acquired Trimco Hardware (Trimco), along with its brands and various assets, through one of its subsidiaries. The inclusion of Trimco's expertise in specialty solutions, coupled with its strong innovation capabilities, will enable Allegion to boost its door and frame portfolio within the Allegion Americas segment. ALLE acquired Lemaar Pty Ltd (Lemaar) in March 2025. This acquisition boosted Allegion's security and accessibility portfolio in Australia. The acquired company is incorporated into the Allegion International February 2025, the company acquired Next Door Company, which expanded its doors and frames portfolio. Next Door is reported in its Allegion Americas segment. In June 2024, the company acquired Krieger Specialty Products. The addition of Krieger's expertise in specialty solutions will enable Allegion 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 will enable it to boost its product portfolio within the non-residential business. Both the acquired businesses have been incorporated into the Allegion Americas commitment to rewarding shareholders through dividends and share buybacks is encouraging. The company paid dividends worth $43.6 million in the first quarter of 2025, reflecting an increase of 3.6% year over year. In the same period, Allegion repurchased shares for $40 million. At the time of exiting the first quarter of 2025, the company was left to repurchase shares worth $200 million under its 2023-approved program. In February 2025, Allegion announced a 6% hike in its quarterly dividend rate, which is now 51 cents per the year-to-date period, this Zacks Rank #3 (Hold) company's shares have gained 9.3% compared with the industry's 5.6% growth. Image Source: Zacks Investment Research Allegion is dealing with escalating costs and expenses. During the first quarter of 2025, the company witnessed a 3.4% year-over-year increase in the cost of sales due to high raw material costs. Also, selling and administrative expenses inched up 3.1% year over year. This can be attributed to higher investments in new products and channel development, and growth initiatives. High costs pose a threat to Allegion's bottom line. Escalating costs and expenses, if left unchecked, may negatively impact profitability in the quarters intends to expand its business in new overseas markets. Its international presence exposes it to the risk of adverse currency fluctuations. This is because a strengthening U.S. dollar may require the company to either raise prices or see its margins shrink in locations outside the United States. In the first quarter, forex woes left an adverse impact of 0.8%. Some better-ranked companies are discussed below:Crown Holdings, Inc. CCK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks delivered a trailing four-quarter average earnings surprise of 16.3%. In the past 60 days, the Zacks Consensus Estimate for Crown Holdings' 2025 earnings has increased 3.8%.AptarGroup, Inc. ATR presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 7.3%.In the past 60 days, the consensus estimate for ATR's 2025 earnings has increased 4.3%.The Gorman-Rupp Company GRC presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 2.4%.The Zacks Consensus Estimate for GRC's 2025 earnings has increased a penny in the past 60 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Crown Holdings, Inc. (CCK) : Free Stock Analysis Report AptarGroup, Inc. (ATR) : Free Stock Analysis Report Gorman-Rupp Company (The) (GRC) : Free Stock Analysis Report Allegion PLC (ALLE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
