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Johnson Controls (JCI) Q1 Earnings & Sales Beat, Dividend Up
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Johnson Controls International plc (JCI - Free Report) reported adjusted first-quarter fiscal 2022 earnings per share of 54 cents, up nearly 26% year over year. The bottom line marginally topped the Zacks Consensus Estimate of 53 cents. This outperformance stemmed from higher-than-expected revenues from Building Solutions North America, Building Solutions Europe, Middle East, Africa/Latin America and Building Solutions Asia Pacific and segments.
The company reported adjusted revenues of $5,862 million, up 9.7% year over year. The top line also outpaced the Zacks Consensus Estimate of $5,767.3 million.
Segmental Results
Building Solutions North America: This segment’s adjusted revenues came in at $2,152 million, up 6% from the year-ago quarter’s $2,034 million on growth in HVAC & Controls and Service. The metric marginally topped the Zacks Consensus Estimate of $2,145 million. The segment’s EBITA decreased to $250 million from $255 million reported in first-quarter fiscal 2021 and lagged the consensus mark of $275 million.
Building Solutions Europe, Middle East, Africa/Latin America: Revenues from this segment totaled $959 million, up 1.2% year over year with modest growth in both project installations and service activity, led by strength in Fire & Security, and beat the consensus mark of $914 million. The segment’s EBITA came in at $104 million, up 6.1% year over year. The metric also topped the consensus mark of $92 million.
Building Solutions Asia Pacific: Revenues grew to $675 million, up 11.8% year over year on higher project installations and services, driven by strong growth in Applied HVAC & Controls. The metric topped the consensus mark of $634 million. The segment’s EBITA came in at $68 million, up nearly 12%, driven by volume leverage and the benefit of SG&A/COGS actions which were more than offset by negative price/cost and the unfavorable impact of install/service and geographic mix. The metric, however, lagged the consensus mark of $79 million.
Global Products: Revenues in this segment climbed to $2,076 million, increasing 18.3% year over year, mainly on higher sales in commercial and residential HVAC and Fire & Security. The figure lagged the consensus mark of $2,102 million. The segment’s EBITA came in at $301 million, up around 42% year over year, aided by operational efficiency, favorable product mix and higher sales. The metric beat the Zacks Consensus Estimate of $270 million.
Financial Position
Johnson Controls had cash and cash equivalents of $1,207 million as of Dec 31, 2021, down from $1,839 from the previous-year quarter. Long-term debt marginally decreased to $7,437 million as of Dec 31, 2021. Free cash flow in first-quarter fiscal 2022 was $0.3 billion. During the reported quarter, Johnson Controls completed more than $500 million in share repurchases. It also raised the dividend by 26% and deployed more than $100 million in cash in acquisitions.
Guidance
For second-quarter fiscal 2022, Johnson Controls expects adjusted EPS in the range of 62-64 cents per share, an increase of 19-23% year over year. For fiscal 2022, adjusted EPS expectation is in the band of $3.22-$3.32, implying a 22-25% jump on a year-over-year basis.
Zacks Rank & Key Picks
Currently, Johnson Control carries a Zacks Rank #3 (Hold).
Applied Technologies has an expected earnings growth rate of 17.38% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 7% upward over the past 60 days.
Applied Technologies’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AIT pulled off a trailing four-quarter earnings surprise of 27.96%, on average. The stock has also rallied 34.6% over a year.
Donaldson has an expected earnings growth rate of 10.83% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1% upward over the past 60 days.
Donaldson’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DCI pulled off a trailing four-quarter earnings surprise of 6.67%, on average. The stock has lost 8.7% over a year.
KnowBe4 has an expected earnings growth rate of 37.5% for the current year. The Zacks Consensus Estimate for earnings for the current year has been stable over the past 60 days.
KnowBe4’s earnings topped the Zacks Consensus Estimate in the trailing three quarters, average beat being 133.33%, on average. The stock has also rallied 3.6% over a year.
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Johnson Controls (JCI) Q1 Earnings & Sales Beat, Dividend Up
Johnson Controls International plc (JCI - Free Report) reported adjusted first-quarter fiscal 2022 earnings per share of 54 cents, up nearly 26% year over year. The bottom line marginally topped the Zacks Consensus Estimate of 53 cents. This outperformance stemmed from higher-than-expected revenues from Building Solutions North America, Building Solutions Europe, Middle East, Africa/Latin America and Building Solutions Asia Pacific and segments.
The company reported adjusted revenues of $5,862 million, up 9.7% year over year. The top line also outpaced the Zacks Consensus Estimate of $5,767.3 million.
Segmental Results
Building Solutions North America: This segment’s adjusted revenues came in at $2,152 million, up 6% from the year-ago quarter’s $2,034 million on growth in HVAC & Controls and Service. The metric marginally topped the Zacks Consensus Estimate of $2,145 million. The segment’s EBITA decreased to $250 million from $255 million reported in first-quarter fiscal 2021 and lagged the consensus mark of $275 million.
Building Solutions Europe, Middle East, Africa/Latin America: Revenues from this segment totaled $959 million, up 1.2% year over year with modest growth in both project installations and service activity, led by strength in Fire & Security, and beat the consensus mark of $914 million. The segment’s EBITA came in at $104 million, up 6.1% year over year. The metric also topped the consensus mark of $92 million.
Building Solutions Asia Pacific: Revenues grew to $675 million, up 11.8% year over year on higher project installations and services, driven by strong growth in Applied HVAC & Controls. The metric topped the consensus mark of $634 million. The segment’s EBITA came in at $68 million, up nearly 12%, driven by volume leverage and the benefit of SG&A/COGS actions which were more than offset by negative price/cost and the unfavorable impact of install/service and geographic mix. The metric, however, lagged the consensus mark of $79 million.
Global Products: Revenues in this segment climbed to $2,076 million, increasing 18.3% year over year, mainly on higher sales in commercial and residential HVAC and Fire & Security. The figure lagged the consensus mark of $2,102 million. The segment’s EBITA came in at $301 million, up around 42% year over year, aided by operational efficiency, favorable product mix and higher sales. The metric beat the Zacks Consensus Estimate of $270 million.
Financial Position
Johnson Controls had cash and cash equivalents of $1,207 million as of Dec 31, 2021, down from $1,839 from the previous-year quarter. Long-term debt marginally decreased to $7,437 million as of Dec 31, 2021. Free cash flow in first-quarter fiscal 2022 was $0.3 billion. During the reported quarter, Johnson Controls completed more than $500 million in share repurchases. It also raised the dividend by 26% and deployed more than $100 million in cash in acquisitions.
Guidance
For second-quarter fiscal 2022, Johnson Controls expects adjusted EPS in the range of 62-64 cents per share, an increase of 19-23% year over year. For fiscal 2022, adjusted EPS expectation is in the band of $3.22-$3.32, implying a 22-25% jump on a year-over-year basis.
Zacks Rank & Key Picks
Currently, Johnson Control carries a Zacks Rank #3 (Hold).
Some better-ranked players in the industrial space are Applied Industrial Technologies (AIT - Free Report) , Donaldson Company (DCI - Free Report) and KnowBe4 , each carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Applied Technologies has an expected earnings growth rate of 17.38% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 7% upward over the past 60 days.
Applied Technologies’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AIT pulled off a trailing four-quarter earnings surprise of 27.96%, on average. The stock has also rallied 34.6% over a year.
Donaldson has an expected earnings growth rate of 10.83% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1% upward over the past 60 days.
Donaldson’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DCI pulled off a trailing four-quarter earnings surprise of 6.67%, on average. The stock has lost 8.7% over a year.
KnowBe4 has an expected earnings growth rate of 37.5% for the current year. The Zacks Consensus Estimate for earnings for the current year has been stable over the past 60 days.
KnowBe4’s earnings topped the Zacks Consensus Estimate in the trailing three quarters, average beat being 133.33%, on average. The stock has also rallied 3.6% over a year.