Allegion shares surged after the Dublin-based security hardware maker posted third-quarter results that topped Wall Street estimates and prompted the company to raise its full-year guidance. Revenue came in at approximately $1.2 billion, up 9.6% from a year earlier, while non-GAAP profit of $2.60 per share beat the consensus estimate by 3.9%. The quarter delivered high-single digit organic revenue growth and low-teens adjusted earnings per share growth, according to the company.
The gains were driven largely by the Americas segment, where double-digit organic growth in non-residential markets more than made up for weakness in Western Europe. Margin expansion across the business also supported the beat, giving management confidence to raise its outlook for the rest of the year. Allegion lifted its full-year adjusted earnings-per-share guidance to a range of $9.05 to $9.10, up from a prior range of $8.85 to $9.00 and above the $8.98 analyst estimate. GAAP earnings-per-share guidance was raised to $8.35 to $8.40 from $7.95 to $8.10, topping the $8.21 estimate. Full-year sales guidance was increased to a range of $4.453 billion to $4.494 billion, up from $4.372 billion to $4.413 billion and ahead of the $4.413 billion consensus.
The stock jumped 6.9% in the morning session on the news, part of a move that saw shares climb 11.02% to $176.52 from $159.00 over the two most recent settled sessions. The rally extended a longer run, with Allegion up 13.34% over the last five trading days and 16.69% over the last 30, pushing the stock close to its 52-week high of $183.11 and well above its 52-week low of $125.00.
With guidance now raised twice in the span of the report, investors will be watching whether the Americas non-residential strength can keep offsetting the drag from Western Europe in the quarters ahead, and whether the margin expansion seen this quarter proves durable as the company closes out its fiscal year.