(Reuters) - Allegion reported first-quarter profit above Wall Street estimates on Thursday, helped by price hikes and strong demand for its security systems in commercial buildings.
Steady demand from business clients in healthcare and education institutions helped Allegion offset the weakness in demand from residential buildings.
The company's price hikes for its locks, keys, and electronic security systems also helped offset inflation-related costs.
The Dublin-based company posted an adjusted profit of $1.55 per share, compared with estimates of $1.45 per share, according to LSEG data.
The security product maker reported that its adjusted operating margin for the first quarter rose to 21.2% from 20.8% a year earlier.
Meanwhile, Allegion's first-quarter revenue fell 3.2% on a reported basis to $893.9 million, hurt by slow demand for its security systems in residential buildings; it was above analysts' estimates of $884.2 million.
The company reaffirmed its full-year adjusted profit expectations of $7.00 to $7.15 per share, total revenue growth of 1.5% to 3.5%, and organic revenue growth of 1% to 3%.