Company Performance - Allegion reported quarterly earnings of $1.86 per share, exceeding the Zacks Consensus Estimate of $1.74 per share, and up from $1.68 per share a year ago, representing an earnings surprise of 6.90% [1] - The company posted revenues of $945.6 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.68% and increasing from $897.4 million year-over-year [2] - Over the last four quarters, Allegion has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Allegion shares have increased approximately 2.1% since the beginning of the year, compared to a 4% gain in the S&P 500 [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $1.64 on revenues of $920.18 million, and for the current fiscal year, it is $7.62 on revenues of $3.86 billion [7] Industry Context - The Security and Safety Services industry, to which Allegion belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Allegion's stock performance [5]

Q4-2024 Earnings Call February 18, 2025 Cautionary Statements Forward-Looking Statements This presentation contains "forward-looking statements," which are statements that are not historical facts, including, but not limited to, statements related to FY- 2025 Outlook, FY-2025 EPS Outlook Details and statements regarding market trends, electronics growth, global software solutions business, the company's financial performance in 2024 and future years, the company's business plans and strategy, the company's ...

Revenue Sources and Market Exposure - Approximately 24% of the company's 2024 net revenues were derived from outside the U.S.[82] - The company is exposed to market risks, including currency exchange rate fluctuations, which may adversely affect financial results[82]. Financial Position and Debt - The net carrying value of goodwill and other indefinite-lived intangible assets totaled approximately $1.5 billion and $101 million, respectively, as of December 31, 2024[84]. - The company had approximately $2 billion of outstanding indebtedness at December 31, 2024, with a senior unsecured revolving credit facility permitting borrowings of up to $750 million[88]. - The combined outstanding variable rate balance of the Credit Facilities was $212.5 million at December 31, 2024, exposing the company to variable interest rate risk[89]. Strategic Initiatives and Competition - The company must develop and commercialize new products and services to meet evolving customer needs and remain competitive[93]. - The company is focused on making acquisitions to strengthen its industry position and expand into adjacent markets, but future acquisitions may not achieve anticipated benefits[99]. - The company competes in a market with significant competition, including from private label brands and technological developments[91]. - The company must navigate shifting consumer preferences, particularly towards e-commerce, to maintain expected future revenues[96]. Operational Risks and Challenges - The company faces risks associated with potential impairment charges on investments in start-up companies and development-stage technology[102]. - Restructuring initiatives may lead to increased costs and reduced productivity, impacting the company's ability to achieve growth or cost savings[105]. - Global climate change and unexpected events could disrupt operations, affecting the availability and cost of materials, and leading to increased operating costs[106]. - Compliance with evolving climate change regulations may result in increased costs for energy, production, and raw materials, adversely impacting operations[107]. - Global health crises could restrict business operations and affect financial performance, with uncertain impacts on future developments[108]. - Labor shortages and increased turnover rates have led to higher operational costs and could negatively affect production efficiency[118]. - Disruptions in the global supply chain, including reliance on sole suppliers, may impair the company's ability to meet customer demands and impact financial performance[120]. IT and Cybersecurity Risks - The company relies heavily on IT systems for operations, and any failures or disruptions could impair business management and operations[109]. - Third-party service providers are critical to the company's IT infrastructure, and their failures could increase cybersecurity risks and operational costs[110]. Legal and Regulatory Risks - The company is currently involved in legal proceedings that could adversely affect its business and financial condition[125]. - The company faces risks related to intellectual property infringement claims, which could disrupt its operations and require costly litigation[126]. - Regulatory compliance costs are significant, and changes in laws could necessitate increased expenditures or the development of new products[128]. - The company has received notifications from governmental agencies regarding hazardous substance cleanup, which may lead to substantial liabilities[129]. - The company operates under a complex tax structure, with potential disagreements from tax authorities that could result in significant tax liabilities[130]. - Changes in tax laws and regulations could adversely affect the company's effective tax rate and cash obligations[132]. - The implementation of global tax reforms, including a minimum effective corporate tax rate of 15%, could materially impact the company's financial results[133]. - The company may be subject to Irish dividend withholding tax, which could discourage investment in its stock[141]. Shareholder and Acquisition Risks - Provisions in the company's Memorandum and Articles of Association could delay or prevent acquisitions, potentially affecting share price[144]. - Irish law imposes certain restrictions on shareholder actions that could hinder acquisition attempts[145].

Founder of Dividend Mantra. Founder of Mr. Free At 33. Co-Founder of Dividends & Income. I started blogging about my journey to financial independence back in 2011. By living well below my means and intelligently investing my hard-earned capital, I went from below broke at age 27 to financially free at 33 years old. I regularly create content on dividend growth investing, living off of dividends, undervalued high-quality dividend growth stocks, high-yield situations, and other long-term investment opportuni ...

Leading Lock Brand Rated as Most Trusted Door Lock Brand in Annual StudyCARMEL, Ind., Feb. 14, 2025 /PRNewswire/ -- Schlage®, a distinguished leader in home security and access solutions for over a century, has once again been recognized as the most trusted brand in the 2025 America's Most Trusted® Door Locks & Hardware Study conducted by Lifestory Research. This is the sixth straight year that Schlage has been awarded this esteemed recognition, reinforcing its position as the top consumer choice for door l ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Allegion (ALLE) , which belongs to the Zacks Security and Safety Services industry.This security device maker has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 11.33%.For the last reported quarter, Allegion came out with earnings of ...

Allegion plc (ALLE) stands to benefit from strength across its businesses, focus on operational excellence and acquired assets. The company remains focused on investing in growth opportunities and strengthening its long-term market position.ALLE, which has a market capitalization of $11.2 billion, currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.Business Strength: Allegion is seeing strong momentum across its segments. Stable demand across ...

Offering unmatched convenience and security, America's Most Trusted lock brand1 expands its portfolio, redefining home access for a safer, smarter tomorrowLAS VEGAS, Jan. 6, 2025 /PRNewswire/ -- Schlage, a trusted leader in home security and access solutions for over a century, today announced its latest breakthroughs in smart lock technology at the 2025 Consumer Electronics Show (CES): the Schlage Sense Pro™ Smart Deadbolt and the Schlage Arrive™ Smart WiFi Deadbolt. Schlage Sense Pro™ Smart Deadbolt S ...

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Allegion plc (ALLE) is well-positioned to benefit from strength in the Allegion Americas segment and accretive acquisitions. The company’s commitment to reward its shareholders also bodes well.Headquartered in Dublin, Ireland, Allegion is a leading global provider of security products and solutions for business and domestic purposes. The company offers an extensive portfolio of mechanical and electronic security products, including doors and door systems, electronic security products, biometric and mobile a ...