Allegion raises profit forecast on strong demand for electronic security devices
Oct 31 (Reuters) -
Lock maker Allegion beat estimates for third-quarter results and raised its annual profit forecast on Tuesday, on price hikes amid strong customer demand for its electronic security devices.
The company, which sells products ranging from locks to digital security systems, has raised prices in recent months to reduce inflation-related cost pressures.
Allegion now expects full-year adjusted profit per share to be between $6.80 and $6.90, compared with the $6.70 to $6.80 per share it had previously projected.
"Demand for our electronics solutions remains strong. We delivered mid-teens organic growth in electronics and software solutions in the quarter, and we continue to see a long runway for further adoption," President and CEO John Stone said in a statement.
Operating margin for the third quarter rose to 21% from 17.8% a year earlier, aided by price hikes and higher productivity offsetting still-high inflation.
The Dublin, Ireland-based company said it was on track to a record year of revenue growth, affirming its full-year organic revenue growth forecast of 5.5% to 6.5%. The company posted third-quarter revenue of $917.9 million, higher than analysts' estimates of $910.4 million, according to LSEG data.
The company posted a profit of $1.94 per share compared to estimates of $1.73 per share, according to LSEG data. (Reporting by Harshita Mary Varghese; Editing by Tasim Zahid)
