Johnson Controls Earnings: Everything You Must Know Now

Johnson Controls Inc. (NYSE:JCI) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Johnson Controls Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 20.75% to $0.42 in the quarter versus EPS of $0.53 in the year-earlier quarter.

Revenue: Decreased 1.28% to $10.43 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Johnson Controls Inc. reported adjusted EPS income of $0.42 per share. By that measure, the company missed the mean analyst estimate of $0.42. It missed the average revenue estimate of $10.48 billion.

Quoting Management: “Our second quarter results were at the high end of our previous guidance. Building Efficiency posted earnings level with last year despite soft institutional and construction markets which negatively impacted revenues. Automotive Experience benefited from higher auto production in North America and Asia, but these improvements were more than offset by the low production levels as well as operational and restructuring-related costs in Europe,” said Stephen A. Roell, chairman and chief executive officer of Johnson Controls. “We remain committed to improving profitability despite soft global demand in our markets. Our restructuring initiatives are gaining momentum and proceeding as planned. We expect to see significant benefits in the second half of the fiscal year.”

Key Stats (on next page)…

Revenue increased 0.08% from $10.42 billion in the previous quarter. EPS decreased 19.23% from $0.52 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.75 and has not changed. For the current year, the average estimate has moved down from a profit of $2.6 to a profit of $2.59 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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