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Johnson Controls (JCI) Q4 Earnings In Line, Improve Y/Y

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Johnson Controls International plc (JCI - Free Report) reported adjusted earnings per share of 93 cents in fourth-quarter fiscal 2018, in line with the Zacks Consensus Estimate. Earnings increased 7% from 87 cents recorded in fourth-quarter fiscal 2017. The reported quarter saw solid organic revenue growth and free cash flow conversion.

For fiscal 2018, adjusted earnings per share were $2.83, higher than the fiscal 2017 figure of $2.60.

Johnson Controls International plc Price, Consensus and EPS Surprise

 

Johnson Controls International plc Price, Consensus and EPS Surprise | Johnson Controls International plc Quote

Operational Update

During the quarter under review, Johnson Controls reported revenues of $8.37 billion, surpassing the Zacks Consensus Estimate of $8.28 billion. Revenues increased 3% year over year. For fiscal 2018, revenues were $31.4 billion, up from the fiscal 2017 figure of $30.1 billion.

In the quarter under review, the cost of sales increased to $5.85 billion from $5.62 billion in the year-ago quarter. Gross profit rose to $2.52 billion from $2.51 billion in the year-ago quarter.

Selling, general and administrative expenses in the fiscal fourth quarter totaled $1.48 billion, up from the prior-year quarter figure of $1.25 billion.

Segment Results

Building Technologies & Solutions: This segment’s adjusted revenues were $6.18 billion, increasing from the year-ago quarter figure of $6 billion. The segment’s EBITA increased to $939 million from $904 million in fourth-quarter fiscal 2017.

Power Solutions: Adjusted revenues in this segment rose to $2.19 billion from $2.13 billion a year ago. Segment EBITA was $424 million, down from fourth-quarter fiscal 2017 level of $431 million.

Financial Position

Johnson Controls had cash and cash equivalents of $200 million as of Sep 30, 2018, down from $321 million as of Sep 30, 2017. Long-term debt declined to $9.64 billion in the quarter under review from $12 billion as of Sep 30, 2017.

In the reported quarter, the company repurchased 1.2 million shares for $45 million. Further, the company announced additional repurchase authorization of $1 billion.

Guidance

Johnson Controls anticipates EPS guidance for fiscal 2019 to be $2.90-$3.05.

Zacks Rank & Key Picks

Johnson Controls currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Advance Auto Parts, Inc. (AAP - Free Report) and AutoZone, Inc. (AZO - Free Report) . While Allison Transmission sports a Zacks Rank #1 (Strong Buy), both Advance Auto Parts and AutoZone carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 11.8%.

Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have risen 44.5%.

AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have risen 20%.

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