Allegion Shares Rise on Strong Earnings, Guidance Hike
Shares of Allegion (NYSE: ALLE) surged more than 12% as the company reported better-than-expected second-quarter results and raised its full-year guidance. Revenue grew by 13%, while adjusted earnings per share increased by 18%. Management also lifted sales growth expectations for the year from a midpoint of 7% to 8%. The strong performance followed earlier supply chain disruptions in Q1, which had dampened momentum. Allegion's success was partly driven by its acquisition strategy, with M&A activity contributing five percentage points to sales growth. Known as a steady compounder in the non-discretionary security and access control industry, Allegion is expanding into modern solutions like electronic locks and software-based services. The company currently trades at 18 times forward earnings and has maintained dividend increases for over a decade. Despite its strong performance, Motley Fool's Stock Advisor team did not include Allegion in their latest list of top stock picks.
Tickers: $ALLE