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Johnson Controls International plc (JCI - Free Report) reported adjusted third-quarter fiscal 2021 earnings per share of 83 cents, in line with the Zacks Consensus Estimate. This outperformance stemmed from the higher-than-expected contributions from the Building Solutions North America and Building Solutions Europe, Middle East, Africa/Latin America segments.
The bottom line also rose 24% year over year. Johnson Controls reported fiscal third-quarter adjusted revenues of $6,344 million, up 19% year over year. The revenue figure, moreover, topped the Zacks Consensus Estimate of $6,240 million.
Building Solutions North America: This segment’s adjusted revenues came in at $2,212 million, up from the year-ago quarter’s $2,020 million on growth in HVAC & Controls and Fire & Security. The segment’s EBITA increased to $326 million from the $311 million reported in third-quarter fiscal 2020. The metric also topped the consensus mark of $320 million.
Building Solutions Europe, Middle East, Africa/Latin America: Revenues in this segment came in at $962 million, up 27% year over year, on rebound in project installations. The metric also outpaced the consensus mark of $912 million. The segment’s EBITA jumped 66% year over year to $103 million on volume leverage and increased operational efficiency. The reported EBITDA also surpassed the consensus mark of $76 million.
Building Solutions Asia Pacific: Revenues grew to $712 million from the year-ago quarter’s $588 million on higher project installations and services, driven by strong growth in Applied HVAC & Controls. The metric also exceeded the consensus mark of $678 million. However, the segment’s EBITA came in at $84 million, down from the third-quarter fiscal 2020 level of $92 million. This downside was due to the benefit of volume leverage and operational cost-reduction actions taken this year being more than offset by the cost-containment actions taken last year on account of the pandemic. The reported EBITDA also lagged the consensus mark of $96 million.
Global Products: Revenues in this segment climbed to $2,458 million from the prior year’s $1,979 million, mainly on higher sales in commercial and residential HVAC and Fire & Security. This segment’s EBITA came in at $514 million, up 34% year over year, aided by operational efficiency, favorable product mix and higher sales. The metric, however, missed the Zacks Consensus Estimate of $552 million.
Financial Position
Johnson Controls had cash and cash equivalents of $1,450 million as of Jun 30, 2021, down from $1,951 million on Sep 30, 2020. Long-term debt decreased to $7,318 million as of Jun 30, 2021 from $7,526 million as of Sep 30, 2020. Free cash flow for third-quarter fiscal 2021 came in at $735 million, slightly down from the $736 million recorded in the corresponding period of 2020.
During the reported quarter, Johnson Controls bought back 5 million shares for $340 million. In the second quarter, the company completed the acquisition of Silent-Aire for $900 million, thus establishing itself a leader in the high growth hyperscale data-center vertical.
Guidance
For fourth-quarter fiscal 2021, Johnson Controls expects adjusted EPS in the range of 86-88 cents per share.
For fiscal 2021, adjusted EPS is expected in the band of $2.64-2.66 a share versus the prior guided range of $2.58-2.65. The revised forecast suggests an 18-19% increase on a year-over-year basis. Organic revenues are expected to scale up in mid-single digits year over year.
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Johnson Controls (JCI) Meets Q2 Earnings Mark, Raises FY 21 View
Johnson Controls International plc (JCI - Free Report) reported adjusted third-quarter fiscal 2021 earnings per share of 83 cents, in line with the Zacks Consensus Estimate. This outperformance stemmed from the higher-than-expected contributions from the Building Solutions North America and Building Solutions Europe, Middle East, Africa/Latin America segments.
The bottom line also rose 24% year over year. Johnson Controls reported fiscal third-quarter adjusted revenues of $6,344 million, up 19% year over year. The revenue figure, moreover, topped the Zacks Consensus Estimate of $6,240 million.
Johnson Controls — which shares space with Allegion PLC (ALLE - Free Report) , Lakeland Industries Inc. (LAKE - Free Report) and Alarm.com Holdings, Inc. (ALRM - Free Report) — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 $2,212 million, up from the year-ago quarter’s $2,020 million on growth in HVAC & Controls and Fire & Security. The segment’s EBITA increased to $326 million from the $311 million reported in third-quarter fiscal 2020. The metric also topped the consensus mark of $320 million.
Building Solutions Europe, Middle East, Africa/Latin America: Revenues in this segment came in at $962 million, up 27% year over year, on rebound in project installations. The metric also outpaced the consensus mark of $912 million. The segment’s EBITA jumped 66% year over year to $103 million on volume leverage and increased operational efficiency. The reported EBITDA also surpassed the consensus mark of $76 million.
Building Solutions Asia Pacific: Revenues grew to $712 million from the year-ago quarter’s $588 million on higher project installations and services, driven by strong growth in Applied HVAC & Controls. The metric also exceeded the consensus mark of $678 million. However, the segment’s EBITA came in at $84 million, down from the third-quarter fiscal 2020 level of $92 million. This downside was due to the benefit of volume leverage and operational cost-reduction actions taken this year being more than offset by the cost-containment actions taken last year on account of the pandemic. The reported EBITDA also lagged the consensus mark of $96 million.
Global Products: Revenues in this segment climbed to $2,458 million from the prior year’s $1,979 million, mainly on higher sales in commercial and residential HVAC and Fire & Security. This segment’s EBITA came in at $514 million, up 34% year over year, aided by operational efficiency, favorable product mix and higher sales. The metric, however, missed the Zacks Consensus Estimate of $552 million.
Financial Position
Johnson Controls had cash and cash equivalents of $1,450 million as of Jun 30, 2021, down from $1,951 million on Sep 30, 2020. Long-term debt decreased to $7,318 million as of Jun 30, 2021 from $7,526 million as of Sep 30, 2020. Free cash flow for third-quarter fiscal 2021 came in at $735 million, slightly down from the $736 million recorded in the corresponding period of 2020.
During the reported quarter, Johnson Controls bought back 5 million shares for $340 million. In the second quarter, the company completed the acquisition of Silent-Aire for $900 million, thus establishing itself a leader in the high growth hyperscale data-center vertical.
Guidance
For fourth-quarter fiscal 2021, Johnson Controls expects adjusted EPS in the range of 86-88 cents per share.
For fiscal 2021, adjusted EPS is expected in the band of $2.64-2.66 a share versus the prior guided range of $2.58-2.65. The revised forecast suggests an 18-19% increase on a year-over-year basis. Organic revenues are expected to scale up in mid-single digits year over year.