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Johnson Controls (JCI) Q3 Earnings Beats, Outlook Updated

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Johnson Controls Inc. (JCI - Free Report) is a supplier of automotive interiors, batteries, and other control equipment. The company is focused on a comprehensive cost saving program along with improving productivity. The company is gaining from its market expansion in China. It anticipates significant growth opportunities in the nation. In addition, Johnson Controls will benefit from the acquisitions and mergers that it undertakes to provide customers with world-class technologies through strong complementary brands and channels.

However, the divestiture of several businesses has been weighing on the Johnson Controls’ revenues and profits. Negative foreign currency translation has also been affecting the company’s results. Due to this, investors have been eagerly awaiting Johnson Controls’ earnings report.

Estimate Trend & Surprise History

Investors should note that the third-quarter (ended Jun 30, 2016) earnings estimate for Johnson Controls remained unchanged over the past month.

Johnson Controls has a mostly positive history of earnings surprises. It has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with a positive average beat of 2.68%.

Earnings Top Estimates

Johnson Controls delivered adjusted earnings per share of $1.07 in the third quarter of fiscal 2016, beating the Zacks Consensus Estimate of $1.03. Adjusted earnings also increased 18% year over year.

Revenues Miss Estimates

Johnson Controls reported revenues of $9.5 billion, down from $9.6 billion in the prior-year quarter mainly due to the deconsolidation of the Automotive Interiors joint venture and foreign exchange. Revenues also missed the Zacks Consensus Estimate of $9.65 billion.

Key Stats/Developments to Note

For fiscal 2016, Johnson Controls modified its earnings per share guidance to $3.95–$3.98 from the prior projection of $3.85–$4.00, based on strong operating performance.

Johnson Controls expects earnings per share in the fourth quarter of fiscal 2016 to be in the range of $1.17–$1.20.

Zacks Rank

Currently, Johnson Controls has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released.

Market Reaction

Johnson Controls’ shares have remained inactive so far following the release. It would be interesting to see how the market reacts to the results during the trading session today.

JOHNSON CONTROL Price and EPS Surprise

JOHNSON CONTROL Price and EPS Surprise | JOHNSON CONTROL Quote

Check back later for our full write up on Johnson Controls’ earnings report!

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