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.
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).
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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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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.
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%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks 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.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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