Allegion plc ALLE is scheduled to release first-quarter 2025 results on April 24, before market open.

The Zacks Consensus Estimate for ALLE’s first-quarter revenues is pegged at $931.6 million, indicating growth of 4.2% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $1.68 per share, which has remained steady in the past 30 days. The figure indicates growth of 8.4% 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 9.9% on average. In the last reported quarter, its bottom line beat the consensus estimate by 6.9%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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 first-quarter performance is expected to have benefited from stable demand across end markets like education, healthcare, government, hospitality and retail end markets. The increase in demand for residential and non-residential products is also anticipated to have augmented its top-line performance in the first quarter. We expect revenues from the segment to increase 5.5% year over year to $748.5 million.

Increased adoption of advanced technologies and solutions in the electronics security products market, such as wireless locks and mobile-enabled smart locks, is expected to have boosted the Allegion International segment’s performance in the first quarter.

Allegion has always been focused on expanding its product offerings and market presence through buyouts. 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. Both the acquired businesses have been incorporated into the Allegion Americas segment.

Its acquisition of Dorcas in March 2024 strengthened its security products portfolio and boosted its presence in the healthcare and education sectors. The buyouts are expected to have boosted ALLE’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 4.4% year over year and adjusted operating margin to decline 10 basis points to 21.1% in the first 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 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.68 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: ALLE currently carries a Zacks Rank of 2.

Stocks to Consider

Here are some companies, 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 +1.52% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is slated to release first-quarter 2025 results on April 30. Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.6%.

AptarGroup, Inc. ATR has an Earnings ESP of +2.59% and a Zacks Rank of 3 at present. The company is scheduled to release first-quarter 2025 results on May 1.

ATR’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.3%.

Crane Company CR has an Earnings ESP of +1.68% and a Zacks Rank of 3 at present. The company is slated to release first-quarter 2025 results on April 28.

Crane’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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