Benzinga | Feb 15, 2021 10:37AM EST

Allegion Earnings Preview

On Tuesday, February 16, Allegion (NYSE:ALLE) will release its latest earnings report. Benzinga's outlook for Allegion is included in the following report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Allegion EPS will likely be near $1.19 while revenue will be around $692.76 million, according to analysts. In the same quarter last year, Allegion reported earnings per share of $1.28 on revenue of $719.50 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 7.03% decline in the company's earnings. Sales would have fallen 3.72% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.19 0.84 0.89 1.29EPS Actual 1.67 0.92 1.04 1.28Revenue Estimate 666.04 M 610.80 M 657.79 M 733.46 MRevenue Actual 728.40 M 589.50 M 674.70 M 719.50 M

Stock Performance

Shares of Allegion were trading at $119.18 as of February 11. Over the last 52-week period, shares are down 11.98%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Allegion is scheduled to hold the call at 08:00:00 ET and can be accessed here.