Lockmaker Allegion raises profit forecast on strong demand from commercial markets
July 24 (Reuters) -Allegion ALLE.N raised its 2024 adjusted profit forecast on Wednesday, anticipating strong demand for its security systems in commercial buildings.
The company, which manufactures security doors, automated entrance solutions, electronic locks, among others, now expects its full-year adjusted profit to be between $7.15 and $7.30 per share, compared with its earlier forecast of $7 to $7.15.
Analysts on average were expecting $7.11 per share, according to LSEG data.
Hiking the prices of its products helped the company combat inflation-related costs and weak demand from its residential business.
A slow housing market due to high mortgage rates impacted demand for Allegion's security systems in North America.
"We see stability in demand given our broad end-market exposure and specification expertise," Chief Executive John Stone said.
The Dublin-based company posted an adjusted profit of $1.96 per share in the second quarter, beating estimates of $1.84, according to LSEG data.
Its adjusted operating margin rose to 21.6%, up from 20.2% a year earlier.
The company's quarterly revenue climbed 5.8% to $965.6 million, above analysts' average estimate of $953.6 million.
Reporting by Kannaki Deka in Bengaluru; Editing by Shreya Biswas
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