Allegion beats fourth-quarter profit estimates on higher demand, price hikes

By Thomson Reuters Feb 20, 2024 | 6:05 AM

(Reuters) – Allegion beat fourth-quarter profit estimates on Tuesday, helped by price hikes and strong demand for its security systems in commercial buildings.

Robust orders from business clients in healthcare and education institutions helped Allegion offset the weakness in demand from residential buildings.

The company, which sells products ranging from locks to digital security systems, raised prices and increased productivity to reduce inflation-related cost pressures.

The Dublin-based company forecast full-year 2024 adjusted profit between $7.00 and $7.15 per share, in line with estimates of $7.04 per share.

Adjusted operating margin for the fourth quarter rose to 22% from 20.7% a year earlier.

The company posted an adjusted profit of $1.68 per share, compared with estimates of $1.59 per share, according to LSEG data.

The security product maker’s fourth-quarter revenue rose 4.2% to $897.4 million from a year ago, but missed analysts’ estimates of $902.1 million.

(Reporting by Kannaki Deka and Aatreyee Dasgupta in Bengaluru; Editing by Vijay Kishore)