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Allegion plc (ALLE), headquartered in Dublin, Ireland, manufactures and markets mechanical and electronic security products and solutions. Valued at $11.5 billion by market cap, the company offers door controls, locks, electronic security systems, and time and attendance solutions under brands like Schlage, CISA, and Von Duprin. The global security products and solutions provider is expected to announce its fiscal fourth-quarter earnings for 2024 on Tuesday, Feb. 18.
Ahead of the event, analysts expect ALLE to report a profit of $1.74 per share on a diluted basis, up 3.6% from $1.68 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect ALLE to report EPS of $7.41, up 6.5% from $6.96 in fiscal 2023. Its EPS is expected to rise 2.7% year over year to $7.61 in fiscal 2025.
ALLE stock has underperformed the S&P 500’s ($SPX) 25.5% gains over the past 52 weeks, with shares up 5.4% during this period. Similarly, it underperformed the Industrial Select Sector SPDR Fund’s (XLI) 23.8% gains over the same time frame.
ALLE's slower-than-anticipated growth in its residential business, hindered by elevated mortgage rates and increasing housing costs, coupled with escalating interest expenses, has led to its underperformance.
On Oct. 24, ALLE shares closed down more than 3% after reporting its Q3 results. Its adjusted EPS came in at $2.16, up 11.3% year over year. The company’s revenue increased 5.4% year over year to $967.1 million. ALLE expects full-year adjusted EPS to be between $7.35 and $7.45.
Analysts’ consensus opinion on ALLE stock is cautious, with a “Hold” rating overall. Out of nine analysts covering the stock, two advise a “Strong Buy” rating, five give a “Hold,” one suggests a “Moderate Sell,” and one recommends a “Strong Sell.” ALLE’s average analyst price target is $142.25, indicating a potential upside of 7.6% from the current levels.
