Allegion plc

(New York Stock Exchange)
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Slightly Bullish +25

Allegion (ALLE) Lags Q1 Earnings Estimates

AI-generated analysis

πŸ“‰ Allegion reported quarterly earnings of $1.80 per share, missing the Zacks Consensus Estimate of $1.88 by 4.13%.

πŸ“ˆ Revenues reached $1.03 billion for the quarter ended March 2026, surpassing analyst estimates by 1.61%.

πŸ“Š The company has topped consensus revenue estimates four times over the last four quarters.

πŸ“‰ Shares have underperformed the market, losing 6.8% since the beginning of the year versus the S&P 500's 4.8% gain.

🀝 Over the past four quarters, Allegion has surpassed consensus EPS estimates two times.

πŸ’° Current consensus estimates project $2.24 in EPS and $1.1 billion in revenues for the coming quarter.

πŸ“… The current fiscal year consensus stands at $8.74 in EPS and $4.32 billion in revenues.

🏷️ Zacks Rank #3 (Hold) suggests shares are expected to perform in line with the market in the near future.

🏭 The Security and Safety Services industry is currently ranked in the top 26% of all Zacks industries.

🎯 Industry rank performance research shows the top 50% outperform the bottom 50% by a factor of more than 2 to 1.

πŸ” Investors are advised to monitor management commentary and future earnings estimate revisions for stock direction.

πŸ†š Peer company SoundThinking (SSTI) has yet to report its results for the quarter ended March 2026.

⚠️ Analysts expect SoundThinking to post a quarterly loss of $0.24 per share, down 13.7% in revenues.

πŸ“… SoundThinking's results are scheduled to be released on May 14.

Bullish Signals
  • Allegion reported quarterly revenues of $1.03 billion, surpassing the Zacks Consensus Estimate by 1.61%.
  • The company has topped consensus revenue estimates four times over the last four quarters, demonstrating consistent top-line growth.
  • Over the last four quarters, Allegion has surpassed consensus EPS estimates two times, indicating frequent positive earnings performance.
  • Allegion belongs to the Security and Safety Services industry, which is currently ranked in the top 26% of all 250+ Zacks industries.
  • Research indicates that top-ranked industries outperform the bottom-ranked ones by a factor of more than 2 to 1, offering upside potential.
  • The current consensus EPS estimate for the coming quarter is $2.24 on $1.1 billion in revenues.
Risk Factors
  • Allegion reported Q1 earnings of $1.8 per share, missing the Zacks Consensus Estimate of $1.88 per share by 4.13%.
  • The company has missed earnings expectations for two consecutive quarters, with a -3.48% surprise in the prior quarter as well.
  • Allegion shares have declined approximately 6.8% year-to-date, significantly underperforming the S&P 500's gain of 4.8%.
  • Ahead of this earnings release, the company received mixed estimate revisions, resulting in a Zacks Rank #3 (Hold) rating.
  • The industry outlook is not strong, as Allegion belongs to an industry ranked in the top 26% but potentially vulnerable compared to better-performing peers.
  • Competitor SoundThinking (SSTI) is facing severe headwinds with an expected quarterly loss of $0.24 per share and revenue declining 13.7% year-over-year, signaling sector-wide concerns.
Full Analysis
Allegion PLC reported quarterly earnings that missed analysts' estimates, with earnings per share coming in at $1.80 versus the Zacks Consensus Estimate of $1.88. This represents a negative surprise of 4.13%, down from the previous quarter's miss of 3.48%. Revenue for the period ended March 2026 was $1.03 billion, which beat the consensus estimate by 1.61% and marked the fourth time in the last four quarters that revenue surpassed expectations. However, the company has fallen behind the broader market, losing about 6.8% year-to-date compared to the S&P 500's gain of 4.8%. Looking ahead, the immediate stock movement is expected to hinge on management commentary during the earnings call. Based on mixed estimate revisions prior to the report and the current performance data, the company maintains a Zacks Rank #3 (Hold), suggesting shares are expected to perform in line with the market in the near future. Analysts project a consensus EPS of $2.24 and revenue of $1.1 billion for the coming quarter, along with full-year earnings expectations of $8.74 on $4.32 billion in revenues. The security and safety services industry itself ranks in the top 26% of all industries covered by Zacks Investment Research, indicating a generally positive sector outlook that could impact Allegion's performance over time. The company has surpassed revenue estimates four times over the last four quarters, showing some consistency in top-line growth despite missing on earnings per share and trailing the market index.