Johnson Controls Earnings: Here’s Why the Stock is Rising Now

Johnson Controls Inc. (NYSE:JCI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4.95%.

Johnson Controls Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 21.88% to $0.78 in the quarter versus EPS of $0.64 in the year-earlier quarter.

Revenue: Rose 2.36% to $10.83 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Johnson Controls Inc. reported adjusted EPS income of $0.78 per share. By that measure, the company beat the mean analyst estimate of $0.75. It missed the average revenue estimate of $11 billion.

Quoting Management: “We are pleased with the significant improvement in profitability of all three businesses in the third quarter. Our initiatives to reduce costs and improve operational efficiencies continue to gather momentum and deliver margin expansion,” said Stephen A. Roell, Johnson Controls chairman and chief executive officer. “Despite a challenging production environment, our European automotive business generated a profit in the quarter and profitability improved in our automotive Metals business. Cash flow in the quarter was very strong, enabling us to reduce net debt by more than $550 million. I’d like to recognize the support of our 168,000 employees and thank them for a very good quarter.”

Key Stats (on next page)…

Revenue increased 3.84% from $10.43 billion in the previous quarter. EPS increased 85.71% from $0.42 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.90 to a profit $0.92. For the current year, the average estimate has moved up from a profit of $2.59 to a profit of $2.61 over the last ninety days.

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