(Reuters) – Allegion raised its annual earnings forecast after strong demand for its pricier locks and electronic security systems used in commercial buildings drove a profit beat in the third quarter on Thursday.
The Dublin-based company’s price hikes for product offerings to commercial businesses helped counter weak demand from residential houses, which faced pressures from high mortgage rates and surging home prices.
Sales in the company’s Americas region, its biggest, rose 5.6% in the quarter, mainly driven by non-residential demand. Its international business recorded a 4.4% jump in revenue.
Allegion expects its 2024 adjusted profit per share to be between $7.35 and $7.45, compared with its previous forecast of $7.15 to $7.30.
Its third-quarter adjusted profit per share was $2.16, compared with analysts’ average expectation of $1.98, according to data compiled by LSEG.
Quarterly revenue rose 5.4% to $967.1 million, slightly missing expectations of $970.9 million.
(Reporting by Kannaki Deka in Bengaluru; Editing by Shilpi Majumdar)
