Feb 17 (Reuters) - Allegion posted fourth-quarter profit below Wall Street estimates on Tuesday, as softer demand for residential security devices weighed on performance.
The company's Americas segment's residential business, which makes locks and door controls and systems, continued to be weighed down by subdued demand and borrowing costs.
However, strong pricing for the company's commercial product offerings, which include access-control systems along with software and service solutions, helped offset the weakness in the residential segment.
Earlier this month, Sweden's Assa Abloy, the world's largest lock maker, CEO Nico Delvaux said that while the U.S. residential market remained challenging, they "definitely believe" it has "bottomed out".
For the full year, Allegion expects adjusted earnings per share to range between $8.70 and $8.90, largely in line with analysts' average expectations of $8.86, according to data compiled by LSEG.
Sales in Allegion's Americas division rose 6.1% during the quarter, mainly driven by non-residential demand. Its residential business declined high-single digits organically, as a result of lower volume, partially offset by price.
Meanwhile, its international operations posted a 21.5% increase in revenue.
Allegion reported an adjusted quarterly profit of $1.94 per share, below estimates of $1.99 per share.
The Dublin-based lockmaker's fourth-quarter revenue rose 9.3% to $1.03 billion, slightly missing analysts' average estimates of $1.04 billion.
(Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Vijay Kishore)
