(Reuters) – Allegion raised its annual profit forecast on Wednesday after price increases and solid demand for its electric security devices helped it beat quarterly earnings estimates.
The company, whose products range from security doors and automated entrance solutions to electronic locks, now expects full-year adjusted profit per share of $6.70 to $6.80, compared with $6.55 to $6.75 per share previously expected.
“We expect end markets will be stable with continued strong demand for our electronic solutions,” CEO John Stone said.
Allegion has in recent months benefited from a jump in demand from business clients in the healthcare and retail industries, which has helped offset weakness in orders from consumers worried about the turbulent economy.
Much of its non-residential business has come from Access Technologies, the company it acquired in July last year. Access Technologies contributed $96.1 million or more than 16% to total Americas growth.
Still, the weakness in the residential business prompted the company to lower the top end of its full-year revenue forecast. It now expects full-year organic revenue growth of 5.5% to 6.5%, compared with a prior forecast range of 5.5% to 7.5%.
In the quarter to June, revenue came in at $912.5 million while profit was $1.76 per share. That compared with analysts’ estimates for revenue of $934.7 million on profit of $1.71, according to Refinitiv IBES data.
(Reporting by Akshita Toshniwal; Editing by Shweta Agarwal)
