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Johnson Controls (JCI) Q3 Earnings & Sales Surpass Estimates
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Johnson Controls International plc (JCI - Free Report) reported adjusted earnings per share of 67 cents in third-quarter fiscal 2020, handily outpacing the Zacks Consensus Estimate of 50 cents. The reported figure also comes in higher than the prior-year quarter’s 65 cents per share. This outperformance has been mainly aided by higher EBITA from the company’s Building Solutions North America segment.
Johnson Controls reported revenues of $5,343 million, down 17.2% year over year, in the fiscal third quarter. The revenue figure, however, beat the Zacks Consensus Estimate of $5,143 million. Gross profit decreased to $1,832 million from the year-earlier quarter’s $2,144 million.
Selling, general and administrative expenses in the fiscal third quarter totaled $1,334 million, lower than the prior-year quarter’s $1,388 million.
Johnson Controls International plc Price, Consensus and EPS Surprise
Building Solutions North America: This segment’s adjusted revenues came in at $2,020 million, down from the year-ago quarter’s $2,327 million on decline in HVAC & Controls and Fire & Security. The segment’s EBITA increased to $311 million from the $310 million reported in third-quarter fiscal 2019 driven by cost-mitigation actions during the quarter.
Building Solutions Europe, Middle East, Africa/Latin America: Adjusted revenues in this segment came in at $756 million, down 18% year over year, due to fall in project installations, and volume declines across all regions and platforms. The segment’s EBITA was $62 million, down from the third-quarter fiscal 2019 level of $103 million. Significant volume declines during the quarter resulted in this downtrend.
Building Solutions Asia Pacific: Adjusted revenues decreased to $588 million from the year-ago quarter’s $691 million on declines in project installations and services. This segment’s EBITA came in at $92 million, down from the third-quarter fiscal 2019 level of $98 million, on lower volume.
Global Products: Adjusted revenues in this segment decreased to $1,979 million from the prior year’s $2,511 million, mainly due to lower sales within Building Management Systems, HVAC & Refrigeration Equipment and Specialty Products. This segment’s EBITA was $385 million, down from the third-quarter fiscal 2019 level of $481 million due to dismal volume.
Financial Position
Johnson Controls had cash and cash equivalents of $2,342 million as of Jun 30, 2020, down from $2,805 million as of Sep 30, 2019. Long-term debt declined to $5,671 million in the reported quarter from $6,708 million as of Sep 30, 2019.
Outlook
The company projects organic revenues to be down 9-11% in fourth-quarter fiscal 2020. It also expects adjusted EPS in the range of 68-72 cents in the current quarter.
Zacks Rank & Stocks to Consider
Johnson Controls currently carries a Zacks Rank #3 (Hold).
Shares of Sonic Automotive have climbed 30.3%, year to date, compared with the industry’s rise of 11%.
Shares of AutoNation have rallied 6.2%, year to date, compared with the industry’s gain of 10.9%.
Shares of LCI Industries have appreciated 15.9%, year to date, as against the industry’s decline of 5.4%.
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Johnson Controls (JCI) Q3 Earnings & Sales Surpass Estimates
Johnson Controls International plc (JCI - Free Report) reported adjusted earnings per share of 67 cents in third-quarter fiscal 2020, handily outpacing the Zacks Consensus Estimate of 50 cents. The reported figure also comes in higher than the prior-year quarter’s 65 cents per share. This outperformance has been mainly aided by higher EBITA from the company’s Building Solutions North America segment.
Johnson Controls reported revenues of $5,343 million, down 17.2% year over year, in the fiscal third quarter. The revenue figure, however, beat the Zacks Consensus Estimate of $5,143 million. Gross profit decreased to $1,832 million from the year-earlier quarter’s $2,144 million.
Selling, general and administrative expenses in the fiscal third quarter totaled $1,334 million, lower than the prior-year quarter’s $1,388 million.
Johnson Controls International plc Price, Consensus and EPS Surprise
Johnson Controls International plc price-consensus-eps-surprise-chart | Johnson Controls International plc Quote
Segmental Results
Building Solutions North America: This segment’s adjusted revenues came in at $2,020 million, down from the year-ago quarter’s $2,327 million on decline in HVAC & Controls and Fire & Security. The segment’s EBITA increased to $311 million from the $310 million reported in third-quarter fiscal 2019 driven by cost-mitigation actions during the quarter.
Building Solutions Europe, Middle East, Africa/Latin America: Adjusted revenues in this segment came in at $756 million, down 18% year over year, due to fall in project installations, and volume declines across all regions and platforms. The segment’s EBITA was $62 million, down from the third-quarter fiscal 2019 level of $103 million. Significant volume declines during the quarter resulted in this downtrend.
Building Solutions Asia Pacific: Adjusted revenues decreased to $588 million from the year-ago quarter’s $691 million on declines in project installations and services. This segment’s EBITA came in at $92 million, down from the third-quarter fiscal 2019 level of $98 million, on lower volume.
Global Products: Adjusted revenues in this segment decreased to $1,979 million from the prior year’s $2,511 million, mainly due to lower sales within Building Management Systems, HVAC & Refrigeration Equipment and Specialty Products. This segment’s EBITA was $385 million, down from the third-quarter fiscal 2019 level of $481 million due to dismal volume.
Financial Position
Johnson Controls had cash and cash equivalents of $2,342 million as of Jun 30, 2020, down from $2,805 million as of Sep 30, 2019. Long-term debt declined to $5,671 million in the reported quarter from $6,708 million as of Sep 30, 2019.
Outlook
The company projects organic revenues to be down 9-11% in fourth-quarter fiscal 2020. It also expects adjusted EPS in the range of 68-72 cents in the current quarter.
Zacks Rank & Stocks to Consider
Johnson Controls currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the auto sector include Sonic Automotive Inc. (SAH - Free Report) , AutoNation (AN - Free Report) and LCI Industries (LCII - Free Report) . While Sonic Automotive and AutoNation sport a Zacks Rank of 1 (Strong Buy), LCI Industries carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Sonic Automotive have climbed 30.3%, year to date, compared with the industry’s rise of 11%.
Shares of AutoNation have rallied 6.2%, year to date, compared with the industry’s gain of 10.9%.
Shares of LCI Industries have appreciated 15.9%, year to date, as against the industry’s decline of 5.4%.
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>>