Johnson Controls Inc. Earnings Cheat Sheet: Double-Digit Revenue Growth Continues

S&P 500 (NYSE:SPY) component Johnson Controls Inc. (NYSE:JCI) reported its results for the fourth quarter. Johnson Controls is a technology and industrial company focused on building efficiency, automotive experience and power solutions.

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Johnson Controls Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the auto parts company rose to $538 million (78 cents per share) vs. $449 million (66 cents per share) in the same quarter a year earlier. This marks a rise of 20% from the year earlier quarter.

Revenue: Rose 19.3% to $10.79 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: JCI beat the mean analyst estimate of 76 cents per share. Analysts were expecting revenue of $10.58 billion.

Quoting Management: “We are pleased to report another quarter of record sales and earnings. All of our businesses grew at a double-digit pace as they have throughout fiscal 2011. Across the company, we continued to gain significant market share in our industries as a result of our growth investments and unique strategic positioning,” said Stephen A. Roell, Johnson Controls Chairman and Chief Executive Officer.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 18.2%, with the biggest boost coming in the second quarter when revenue rose 22% from the year earlier quarter.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the third quarter, by one cent in the second quarter, and by one cent in the first quarter.

Gross margin shrank 0.4 percentage point to 16.1%. The contraction appeared to be driven by increased costs, which rose 20% from the year earlier quarter while revenue rose 19.3%.

The increase in profit last quarter comes after net income fell in the previous quarter. In the third quarter, net income declined 14.6% to $357 million.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the first quarter of the next fiscal year is 68 cents per share, a drop from 74 cents. For the fiscal year, the average estimate has moved down from $2.45 a share to $2.43 over the last thirty days.

Competitors to Watch: Lear Corporation (NYSE:LEA), Visteon Corporation (NYSE:VC), Gentex Corporation (NASDAQ:GNTX), Motorcar Parts of America, Inc. (NASDAQ:MPAA), United Technologies Corp. (NYSE:UTX), Honeywell Intl. Inc. (NYSE:HON), Commercial Vehicle Group, Inc. (NASDAQ:CVGI), Modine Manufacturing Co. (NYSE:MOD), Stoneridge, Inc. (NYSE:SRI), and Strattec Security Corp. (NASDAQ:STRT).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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