Allegion is expected to release the results on Thursday July 22nd
Allegion plc (NYSE: ALL) is an American-Irish security company with household and corporate products sold in more than 130 countries around the world. ALLE’s portfolio includes more than 30 global brands, including CISA, Interflex, LCN, Schlage, SimonsVoss and Von Duprin. Allegion specializes in security solutions for residential and commercial locks, door closers and exit devices, steel doors and frames for access control, and employee productivity systems.
ALL is expected to release its financial results for the second quarter of 2021 on Thursday, July 22nd, before the opening bell. In recent history, Allegion has exceeded earnings expectations in all four of its most recent earnings reports. Analysts expect earnings per share for Allegion to increase further in tomorrow’s reporting.
For the second quarter of 2020, ALL topped analyst estimates with a margin of $ 0.08 and reported earnings per share of $ 0.92. Allegion’s earnings per share rose to $ 1.67 in the third quarter of 2020, beating expectations by $ 0.45. For the final quarter of 2020, ALL saw earnings decline to $ 1.49 per share. However, the security firm still beat estimates by a margin of $ 0.30. Allegion reported earnings per share of $ 1.20 for the first quarter of 2021, beating expectations by $ 0.18.
Allegion stocks are up about 28% year-over-year and are up 10% since hitting a 52-week low of $ 94.01 last September. Additionally, ALL’s shares are up 20% year-to-date and are currently less than 3% below their record May 10 high of $ 144.76. Allegion stock also has a forward dividend of $ 1.44 and a dividend yield of 1.06%.
From a fundamental perspective, Allegion stock does not offer a high enough level of consistency or growth to warrant the current valuation of the stock. Allegion shares are traded at a price / earnings ratio of 30.92 and a forward price / earnings ratio of 27.10.
Allegion’s net income declined between fiscal 2019 and fiscal 2020, with debt of $ 1.52 billion and $ 394.3 million in cash on its balance sheet. Overall, the company’s fundamentals suggest that Allegion stock may be overvalued ahead of the second quarter results.