April 28 (Reuters) - Lockmaker Allegion posted first-quarter profit below Wall Street estimates on Tuesday, as its residential security business continued to be weighed down by soft demand and higher borrowing costs.
U.S. homebuilder sentiment fell to a seven-month low in April amid higher mortgage rates and economic uncertainty, hurting businesses like Allegion that sell locks, door controls, and related systems to the residential market.
o CEO John H. Stone said the company is managing costs and other inputs to help offset external pressures amid a volatile macroeconomic environment.
o Allegion reported an adjusted quarterly profit of $1.80 per share, below estimates of $1.89 per share, according to data compiled by LSEG.
o The Dublin-based lockmaker's revenue rose 9.7% to $1.03 billion, in line with analysts' average estimates.
o Sales in Allegion's Americas division rose 6.9% during the quarter, with the non-residential business up mid-single digits organically, driven by favorable pricing.
o Meanwhile, its international operations posted a 21.5% increase in revenue.
o Allegion reaffirmed its full-year adjusted earnings per share forecast at $8.70 to $8.90, the midpoint of which is in line with estimates of $8.80.
(Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Vijay Kishore)
