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

Allegion

20/02/2024 12:01

Feb 20 (Reuters) - Allegion  ALLE.N  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)
 ((Kannaki.Deka@thomsonreuters.com;))