Allegion plc (NYSE:ALLE) reported an EPS of $1.99, exceeding estimates and showcasing its ability to surpass market expectations.
The company’s adjusted net earnings rose to $2.16 per share, indicating an 11.3% increase from the previous year and highlighting Allegion’s growth trajectory.
Despite a slight shortfall in revenue, Allegion’s strong financial performance is evident with net earnings reaching $174 million and a healthy price-to-earnings (P/E) ratio of approximately 22.22.
Allegion plc (NYSE:ALLE) is a global leader in security products and solutions, offering a wide range of products that include locks, door closers, and other security devices. The company operates in a competitive market, with key competitors such as Assa Abloy and Dormakaba. Allegion’s focus on innovation and customer satisfaction has helped it maintain a strong market position.
On October 24, 2024, Allegion reported earnings per share (EPS) of $1.99, exceeding the estimated $1.93. This performance highlights the company’s ability to surpass market expectations, as also noted by the Zacks Consensus Estimate of $1.93 per share. The adjusted net earnings rose to $2.16 per share, marking an 11.3% increase from the previous year, showcasing Allegion’s growth trajectory.
Despite generating revenue of approximately $967.1 million, slightly below the estimated $970.89 million, Allegion’s net revenues for the third quarter of 2024 were reported at $967 million. This slight shortfall in revenue did not deter the company’s overall financial performance, as net earnings reached $174 million. The company’s focus on revenue growth and margin expansion is evident in its financial results.
Allegion’s financial metrics provide further insight into its market valuation. With a price-to-earnings (P/E) ratio of approximately 22.22, investors are willing to pay $22.22 for every dollar of earnings. The price-to-sales ratio of about 3.41 and enterprise value to sales ratio of around 3.82 reflect the market’s valuation of Allegion’s revenue and total worth, respectively.
The company’s financial health is also indicated by its debt-to-equity ratio of roughly 1.53, showing a balanced approach to financing its assets. A current ratio of approximately 1.71 suggests Allegion’s capability to cover short-term liabilities with its short-term assets. The earnings yield of about 4.50% provides insight into the return on investment for shareholders.
