What's In Store For Allegion (ALLE) This Earnings Season?
Zacks Investment Research | Oct 24, 2016 10:55PM ET
Allegion plc (NYSE:ALLE) , a security solution provider for homes and businesses, is set to report third-quarter 2016 results on Oct 27, before the market opens.
Last quarter, the company posted a positive surprise of 11.24%. It also has an impressive earnings history, surpassing estimates in three of the last four quarters at an average of 11.58%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Allegion reported impressive first-half 2016 results buoyed by higher earnings, margins and revenues from acquisitions and organic growth. The company is expected to maintain the performance in the third quarter as well. All the regions reported strong profits, barring Asia Pacific, driven by a stable market, investment in new products and channel strategies.
However, we are concerned about the economic slowdown in certain pockets of the world where Allegion has a considerable presence. The prevailing sluggishness in the Eurozone and continuing recession in China are likely to keep Allegion’s international profits under pressure in the to-be-reported quarter. Moreover, owing to the company’s substantial international presence, volatile currency translations could prove to be a significant headwind.
Earnings Whispers
Our proven model does not conclusively show that Allegion is likely to beat earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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