Allegion Q4 Earnings Preview: Revenue Growth Expected, Adjusted Earnings Estimate at $1.75 per Share
Revenue Forecast:
Analysts anticipate Allegion's revenue to increase 4.5% year-over-year to $937.9 million, aligning with the previous year's 4.2% growth in the same quarter.
Earnings Estimate:
Adjusted earnings are projected to reach $1.75 per share.
Analyst Sentiment:
Analysts have generally maintained their estimates over the past 30 days, suggesting stability heading into earnings. However, Allegion has missed revenue estimates three times in the past two years.
Peer Performance:
Electrical systems peers, such as LSI and Vertiv, have reported strong Q4 results. LSI's revenue growth surpassed estimates by 14.3%, while Vertiv exceeded expectations by 8.8%.
Market Context:
Following the Federal Reserve's success in curbing inflation without triggering a recession, markets surged in 2024. Despite the solid performance of electrical systems stocks, the group has underperformed slightly, with an average price decline of 4.6% in the past month.
Allegion's Position:
Allegion's stock has declined 1.2% during the same period and has an average analyst price target of $143.75.