We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Johnson Controls (JCI) Q2 Earnings Top, Revenues Lag Estimates
Read MoreHide Full Article
Johnson Controls International plc (JCI - Free Report) reported second-quarter fiscal 2024 (ended Mar 31, 2024) adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 75 cents. The bottom line increased 4% year over year.
Total revenues of $6.70 billion missed the consensus estimate of $6.75 billion. While the top line was relatively flat year over year, organic revenues inched up 1%.
Johnson Controls International plc Price, Consensus and EPS Surprise
Building Solutions North America: Revenues were $2.74 billion, up 9% year over year. Our estimate was $2.58 billion. Organic sales jumped 8%, driven by the strong performance of applied heating, ventilation and air conditioning (HVAC) & controls business. EBITA increased 18% year over year to $373 million.
Building Solutions Europe, Middle East, Africa/Latin America: Revenues totaled $1.06 billion, up 3% year over year. Our estimate was $1.03 billion. Organic sales climbed 4% due to growth in service business. EBITA was $89 million, up 29% year over year.
Building Solutions Asia Pacific: Revenues decreased 26% to $491 million. Sales declined 23% organically due to weakness in the China region. EBITA was $54 million, down 32% year over year.
Global Products: Revenues declined 3% year over year to $2.40 billion. Our estimate was $2.48 billion. Organic sales were down 1% due to a decline in the global Residential HVAC business. EBITA was $429 million, down 12% year over year.
Margin Profile
In the fiscal second quarter, Johnson Controls’ cost of sales increased 1.6% year over year to $4.52 billion. Gross profit decreased 2.7% year over year to $2.18 billion and the margin decreased 90 basis points (bps) to 32.6%. Selling, general and administrative expenses were $2.25 billion, up 42.6% year over year.
Financial Position
Johnson Controls had cash and cash equivalents of $843 million as of Mar 31, 2024, compared with $835 million at the end of fiscal 2023. Long-term debt was $7.35 billion compared with $7.82 billion at the end of fiscal 2023.
In the first six months of fiscal 2024, the company used net cash of $449 million from operating activities against $18 million generated in the year-ago period. It reported free cash outflow of $674 million in the first six months of fiscal 2024 compared with $237 million in the year-ago period.
The company repurchased 8 million shares for $474 million in the second quarter of fiscal 2024.
Fiscal Q3 Guidance
Johnson Controls anticipates organic revenue growth to be in low-single digits from the year-ago levels. Adjusted segment EBITA margin is estimated to be approximately 17%. JCI expects adjusted earnings in the range of $1.05-$1.10 per share.
FY24 Guidance
Johnson Controls anticipates organic revenue growth to be in the mid-single digits from the prior-year levels. Adjusted segment EBITA margin is expected to improve 50-75 bps from the year-ago actuals. JCI expects adjusted earnings in the range of $3.60-$3.75 per share.
Zacks Rank
JCI currently carries Zacks Rank #4 (Sell).
Key Picks
Some better-ranked stocks from the Industrial Products sector are discussed below.
The Zacks Consensus Estimate for AIT’s fiscal 2024 (ending June 2024) earnings has increased 1.2% in the past 60 days.
Crane Company (CR - Free Report) presently flaunts a Zacks Rank of 1. It delivered a trailing four-quarter average earnings surprise of 15.2%.
In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 4.9%.
Ingersoll Rand plc (IR - Free Report) currently carries a Zacks Rank of 2 (Buy). IR delivered a trailing four-quarter average earnings surprise of 15.9%.
In the past 60 days, the Zacks Consensus Estimate for Ingersoll Rand’s 2024 earnings has increased 1.6%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Johnson Controls (JCI) Q2 Earnings Top, Revenues Lag Estimates
Johnson Controls International plc (JCI - Free Report) reported second-quarter fiscal 2024 (ended Mar 31, 2024) adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 75 cents. The bottom line increased 4% year over year.
Total revenues of $6.70 billion missed the consensus estimate of $6.75 billion. While the top line was relatively flat year over year, organic revenues inched up 1%.
Johnson Controls International plc Price, Consensus and EPS Surprise
Johnson Controls International plc price-consensus-eps-surprise-chart | Johnson Controls International plc Quote
Segmental Results
Building Solutions North America: Revenues were $2.74 billion, up 9% year over year. Our estimate was $2.58 billion. Organic sales jumped 8%, driven by the strong performance of applied heating, ventilation and air conditioning (HVAC) & controls business. EBITA increased 18% year over year to $373 million.
Building Solutions Europe, Middle East, Africa/Latin America: Revenues totaled $1.06 billion, up 3% year over year. Our estimate was $1.03 billion. Organic sales climbed 4% due to growth in service business. EBITA was $89 million, up 29% year over year.
Building Solutions Asia Pacific: Revenues decreased 26% to $491 million. Sales declined 23% organically due to weakness in the China region. EBITA was $54 million, down 32% year over year.
Global Products: Revenues declined 3% year over year to $2.40 billion. Our estimate was $2.48 billion. Organic sales were down 1% due to a decline in the global Residential HVAC business. EBITA was $429 million, down 12% year over year.
Margin Profile
In the fiscal second quarter, Johnson Controls’ cost of sales increased 1.6% year over year to $4.52 billion. Gross profit decreased 2.7% year over year to $2.18 billion and the margin decreased 90 basis points (bps) to 32.6%. Selling, general and administrative expenses were $2.25 billion, up 42.6% year over year.
Financial Position
Johnson Controls had cash and cash equivalents of $843 million as of Mar 31, 2024, compared with $835 million at the end of fiscal 2023. Long-term debt was $7.35 billion compared with $7.82 billion at the end of fiscal 2023.
In the first six months of fiscal 2024, the company used net cash of $449 million from operating activities against $18 million generated in the year-ago period. It reported free cash outflow of $674 million in the first six months of fiscal 2024 compared with $237 million in the year-ago period.
The company repurchased 8 million shares for $474 million in the second quarter of fiscal 2024.
Fiscal Q3 Guidance
Johnson Controls anticipates organic revenue growth to be in low-single digits from the year-ago levels. Adjusted segment EBITA margin is estimated to be approximately 17%. JCI expects adjusted earnings in the range of $1.05-$1.10 per share.
FY24 Guidance
Johnson Controls anticipates organic revenue growth to be in the mid-single digits from the prior-year levels. Adjusted segment EBITA margin is expected to improve 50-75 bps from the year-ago actuals. JCI expects adjusted earnings in the range of $3.60-$3.75 per share.
Zacks Rank
JCI currently carries Zacks Rank #4 (Sell).
Key Picks
Some better-ranked stocks from the Industrial Products sector are discussed below.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter average earnings surprise of 8.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AIT’s fiscal 2024 (ending June 2024) earnings has increased 1.2% in the past 60 days.
Crane Company (CR - Free Report) presently flaunts a Zacks Rank of 1. It delivered a trailing four-quarter average earnings surprise of 15.2%.
In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 4.9%.
Ingersoll Rand plc (IR - Free Report) currently carries a Zacks Rank of 2 (Buy). IR delivered a trailing four-quarter average earnings surprise of 15.9%.
In the past 60 days, the Zacks Consensus Estimate for Ingersoll Rand’s 2024 earnings has increased 1.6%.