Allegion plc
ALLE
is scheduled to release
second-quarter 2022 results on Jul 28
, before market open.
The Zacks Consensus Estimate for ALLE’s second-quarter earnings has been revised upward by 3.1% in the past 90 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 9.2%.
Let’s see how things are shaping up for Allegion this earnings season.
Factors to Note
Strengthening demand across end markets like healthcare and commercial office markets is likely to have aided Allegion’s performance in the second quarter. Effective pricing actions are also expected to have benefited performance. Allegion Americas segment is likely to have benefited from gains across non-residential businesses.
However, labor shortages, and material and freight-related cost inflation are expected to have hurt ALLE’s performance. Supply chain woes, particularly those associated with shortages of electronic chips and other parts, might have affected the top-line performance. The company’s bottom line is likely to reflect high cost of sales and selling; and administrative expenses.
Given Allegion’s expansion into international markets, a stronger U.S. dollar might have affected its overseas business performance in the quarter.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Allegion this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Earnings ESP
: Allegion has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $1.34. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Zacks Rank
: Allegion carries a Zacks Rank #3.
Highlights of Q1 Earnings
Allegion reported first-quarter 2022 adjusted earnings of $1.07 per share, which surpassed the Zacks Consensus Estimate of 99 cents. However, the bottom line declined 10.8% year over year due to supply-chain woes, and shortages of electronics and other parts. Quarterly revenues of $723.6 million outperformed the Zacks Consensus Estimate of $696 million and increased 4.2% year over year.
Stocks to Consider
Here are some companies within the broader
Industrial Products
sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Crane Holdings
CR
has an Earnings ESP of +6.98% and a Zacks Rank #2. The company is slated to release second-quarter 2022 financial numbers on Jul 25.
The Zacks Consensus Estimate for Crane Holdings’ second-quarter earnings has been revised upward by 4.1% in the past 60 days. CR’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 22.2%.
Zebra Technologies
ZBRA
has an Earnings ESP of +2.15% and a Zacks Rank #3. The company is scheduled to release second-quarter 2022 earnings numbers on Aug 2.
The Zacks Consensus Estimate for Zebra Technologies’ second-quarter earnings has remained steady over the past 60 days. ZBRA’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 8.8%.
MRC Global
MRC
has an Earnings ESP of +30.27% and a Zacks Rank #1. The company is set to release second-quarter 2022 results on Aug 8.
The Zacks Consensus Estimate for MRC Global’s second-quarter earnings has been revised upward by 13.6% in the past 60 days. MRC’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while meeting estimates in one. The average surprise was 140.8%.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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