Allegion Gears Up to Post Q1 Earnings: Here's What to Expect

Core Viewpoint - Allegion plc (ALLE) is expected to report first-quarter 2025 results on April 24, with revenue estimates of $931.6 million, reflecting a 4.2$1.68, indicating an 8.4% increase from the previous year [1]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for ALLE's first-quarter revenues is $931.6 million, indicating a growth of 4.2$1.68 per share, which has remained steady in the past 30 days, reflecting an 8.4% growth from the year-ago quarter [1]. - Allegion has delivered better-than-expected results in each of the trailing four quarters, with an average earnings surprise of 9.9% [2]. Group 2: Segment Performance Insights - The Allegion Americas segment is expected to see a revenue increase of 5.5% year-over-year to $748.5 million, driven by stable demand across various end markets including education, healthcare, government, hospitality, and retail [3]. - The Allegion International segment's performance is anticipated to benefit from the increased adoption of advanced technologies in the electronics security products market, such as wireless locks and mobile-enabled smart locks [4]. Group 3: Strategic Acquisitions - Allegion has focused on expanding its product offerings through acquisitions, including Krieger Specialty Products and Unicel Architectural Corp. in June 2024, which enhanced its door and frame portfolio and expanded its non-residential product offerings [5]. - The acquisition of Dorcas in March 2024 strengthened Allegion's security products portfolio and enhanced its presence in the healthcare and education sectors [6]. Group 4: Cost and Margin Considerations - Rising operating costs due to increased material costs and investments in new products and growth initiatives are expected to impact the company's bottom line, with a projected 4.4$1.68 per share [9][10].