Johnson Controls (JCI) Q3 Earnings Top, Revenues Lag Estimates

Johnson Controls International plc JCI reported third-quarter fiscal 2024 (ended June 2024) adjusted earnings of $1.14 per share, which beat the Zacks Consensus Estimate of $1.08. The bottom line increased 11% year over year.Total revenues of $7.2 billion missed the consensus estimate of $7.4 billion. The top line increased 1% year over year while organic revenues inched up 3%.Segmental ResultsBuilding Solutions North America: Revenues were $2.9 billion, up 9% year over year. Our estimate was $2.9 billion. Organic sales jumped 8%, driven by the strong performance of applied heating, ventilation and air conditioning (“HVAC”) & controls business.  EBITA increased 35% year over year to $521 million.Building Solutions Europe, Middle East, Africa/Latin America: Revenues totaled $1.08 billion, up 3% year over year. Our estimate was $1.1 billion. Organic sales climbed 8% due to growth in service business. EBITA was $111 million, up 23% year over year.Building Solutions Asia Pacific: Revenues decreased 22% to $575 million. Our estimate was $690.7 million. Sales declined 19% organically due to weakness in the systems business in China. EBITA was $67 million, down 34% year over year.Global Products: The segment reported revenues of $2.7 billion, flat year over year. Our estimate was $2.7 billion. Organic sales were up 3% due to an increase in the commercial and residential HVAC businesses. EBITA was $655 million, up 10% year over year.Johnson Controls International plc Price, Consensus and EPS Surprise Johnson Controls International plc price-consensus-eps-surprise-chart | Johnson Controls International plc QuoteMargin ProfileIn the fiscal third quarter, Johnson Controls’ cost of sales increased approximately 1% year over year to $4.7 billion. Gross profit increased 2% year over year to $2.5 billion and the margin increased 30 basis points (bps) to 34.4%. Selling, general and administrative expenses were $1.5 billion, down 2% year over year.Financial PositionJohnson Controls had cash and cash equivalents of $862 million as of Jun 30, 2024, compared with $835 million at the end of fiscal 2023. Long-term debt was $7.9 billion compared with $7.82 billion at the end of fiscal 2023.In the first nine months of fiscal 2024, the company generated net cash of $572 million from operating activities compared with $831 million generated in the year-ago period. It reported a free cash flow of $248 million in the first nine months of the fiscal year compared with $465 million in the year-ago period.The company repurchased 6 million shares for approximately $402 million in the fiscal third quarter.Q4 GuidanceJohnson Controls anticipates organic revenue growth to be approximately 7% from the year-ago level. Adjusted segment EBITA margin is estimated to be approximately 19%. JCI expects adjusted earnings to be in the range of $1.23-$1.26 per share.FY24 GuidanceJohnson Controls anticipates organic revenue growth to be approximately 3% from the prior-year level. Adjusted segment EBITA margin is expected to improve approximately 110 bps from the year-ago actual. JCI expects adjusted earnings to be in the range of $3.66-$3.69 per share. The Zacks Consensus Estimate for adjusted earnings is pegged at $3.58 per share.Zacks RankThe company currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other Industrial CompaniesPentair plc PNR reported second-quarter adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The reported figure also improved 18% from the year-ago quarter.Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion. Crown Holdings, Inc. CCK reported second-quarter adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate of $1.59. The bottom line improved 8% year over year.Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion.A. O. Smith Corporation’s AOS second-quarter adjusted earnings of $1.06 per share missed the Zacks Consensus Estimate of $1.07. However, the bottom line increased 5% on a year-over-year basis.Net sales of $1.02 billion surpassed the consensus estimate of $992 million. The top line increased 7% year over year, driven by strong demand for residential and commercial water heaters in North America.Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson Controls International plc (JCI): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report Crown Holdings, Inc. (CCK): Free Stock Analysis Report Pentair plc (PNR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks