Allegion (ALLE) Q2 Earnings Report Preview: What To Look For

Security hardware provider Allegion (NYSE:ALLE) will be reporting earnings this Thursday before market open. Here’s what to expect.

Allegion beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $941.9 million, up 5.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ adjusted operating income 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 4.3% year on year to $1.01 billion, slowing from the 5.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.99 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 3 upward revisions over the last 30 days (we track 7 analysts). Allegion has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Allegion’s peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Acuity Brands delivered year-on-year revenue growth of 21.7%, beating analysts’ expectations by 3.1%, and Vicor reported revenues up 64.3%, topping estimates by 46.3%. Acuity Brands traded up 5.8% following the results.

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

There has been positive sentiment among investors in the electrical equipment segment, with share prices up 7.9% on average over the last month. Allegion is up 7% during the same time and is heading into earnings with an average analyst price target of $150.85 (compared to the current share price of $152.46).

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