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Johnson Controls (JCI) Q4 Earnings Meet, Revenues Miss Mark
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Johnson Controls International plc (JCI - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of 99 cents per share, in line with the Zacks Consensus Estimate. The bottom line increased 12.5% year over year. Our estimate for earnings in the fiscal fourth quarter was 98 cents.
Total revenues of $6,725 million missed the Zacks Consensus Estimate of $6,782 million. The top line increased 5.2% year over year. Our estimate for total revenues in the fiscal fourth quarter was $6,782.3 million.
Segmental Results
Building Solutions North America: The segment’s revenues came in at $2,562 million, up 9% year over year. Our estimate for Building Solutions North America revenues stood at $2,486.2 million. Organic sales also jumped 9%, owing to growth in project-based business and continued improvement in HVAC & Controls. The segment’s adjusted EBITA increased 6% year over year to $377 million.
Johnson Controls International plc Price, Consensus and EPS Surprise
Building Solutions Europe, Middle East, Africa/Latin America: Revenues from this segment totaled $976 million, down 3% year over year. Our estimate for Building Solutions Europe, Middle East, Africa/Latin America revenues for the fiscal fourth quarter was $1,121.2 million. However, organic sales climbed 9% due to growth in Fire & Security and HVAC & Controls. The segment’s adjusted EBITA came in at $92 million, down 16% from the year-ago period. Performance was hurt by foreign-currency woes and unfavorable region and project mix.
Building Solutions Asia Pacific: Revenues increased 5% to $751 million in the reported quarter. Our estimate for Building Solutions Asia-Pacific revenues was $728.6 million. Sales climbed 12% organically due to strong growth for HVAC & Controls. The segment’s adjusted EBITA came in at $105 million, down 5% year over year.
Global Products: Revenues in this segment ascended 5% year over year to $2,436 million. Our estimate for Global Products revenues in the fiscal fourth quarter was $2,446.3 million. Organic sales rose 11% on the back of strong price realization and continued growth in Light Commercial, Residential HVAC and Fire Detection products. The segment’s adjusted EBITA came in at $533 million, up 21% year over year, aided by higher volumes, positive mix and pricing actions.
Financial Position
Johnson Controls had cash and cash equivalents of $2,031 million as of Sep 30, 2022, compared with $1,336 million at the end of the year-ago period. Long-term debt was $7,426 million compared with $7,506 million in the year-ago period. Free cash flow was $1,398 million during fiscal 2022 compared with $1,999 million at the end of the year-ago period. The company repurchased 21.7 million shares for approximately $1.4 billion during fiscal 2022.
Q1 Guidance
Johnson Controls expects adjusted earnings of 65-67 cents per share for the first quarter of fiscal 2023. The mid-point of the guided range — 66 cents — matches the Zacks Consensus Estimate. The company expects low double-digit organic revenue growth in the first quarter of fiscal 2023.
Adjusted segment EBITA margin is expected to improve 120 to 130 basis points in the fiscal first quarter.
Fiscal 2023 Guidance
For fiscal 2023, Johnson Controls anticipates adjusted earnings of $3.20-$3.60 per share, indicating growth of 7-20% year over year. The mid-point of the guided range — $3.40 — lies below the Zacks Consensus Estimate of $3.54.
The company expects organic revenue growth of high single-digits to low double-digits year over year. Adjusted segment EBITA margin is predicted to improve 80 to 120 basis points year over year.
Zacks Rank & Key Picks
Johnson Controls currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
Enerpac Tool has an estimated earnings growth rate of 44.6% for the current fiscal year. The company’s shares have rallied 23.2% in the past three months.
iRobot Corporation (IRBT - Free Report) presently has a Zacks Rank of 2 (Buy). IRBT’s earnings surprise in the last four quarters was 59.1%, on average.
iRobot has an estimated earnings growth rate of 36.6% for the current year. The stock has gained 10.9% in the past three months.
Reliance Steel & Aluminum Co. (RS - Free Report) presently carries a Zacks Rank of 2. Its earnings surprise in the last four quarters was 13.6%, on average.
Reliance Steel has an estimated earnings growth rate of 29.7% for the current year. The stock has appreciated 7.2% in the past three months.
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Johnson Controls (JCI) Q4 Earnings Meet, Revenues Miss Mark
Johnson Controls International plc (JCI - Free Report) reported fourth-quarter fiscal 2022 adjusted earnings of 99 cents per share, in line with the Zacks Consensus Estimate. The bottom line increased 12.5% year over year. Our estimate for earnings in the fiscal fourth quarter was 98 cents.
Total revenues of $6,725 million missed the Zacks Consensus Estimate of $6,782 million. The top line increased 5.2% year over year. Our estimate for total revenues in the fiscal fourth quarter was $6,782.3 million.
Segmental Results
Building Solutions North America: The segment’s revenues came in at $2,562 million, up 9% year over year. Our estimate for Building Solutions North America revenues stood at $2,486.2 million. Organic sales also jumped 9%, owing to growth in project-based business and continued improvement in HVAC & Controls. The segment’s adjusted EBITA increased 6% year over year to $377 million.
Johnson Controls International plc Price, Consensus and EPS Surprise
Johnson Controls International plc price-consensus-eps-surprise-chart | Johnson Controls International plc Quote
Building Solutions Europe, Middle East, Africa/Latin America: Revenues from this segment totaled $976 million, down 3% year over year. Our estimate for Building Solutions Europe, Middle East, Africa/Latin America revenues for the fiscal fourth quarter was $1,121.2 million. However, organic sales climbed 9% due to growth in Fire & Security and HVAC & Controls. The segment’s adjusted EBITA came in at $92 million, down 16% from the year-ago period. Performance was hurt by foreign-currency woes and unfavorable region and project mix.
Building Solutions Asia Pacific: Revenues increased 5% to $751 million in the reported quarter. Our estimate for Building Solutions Asia-Pacific revenues was $728.6 million. Sales climbed 12% organically due to strong growth for HVAC & Controls. The segment’s adjusted EBITA came in at $105 million, down 5% year over year.
Global Products: Revenues in this segment ascended 5% year over year to $2,436 million. Our estimate for Global Products revenues in the fiscal fourth quarter was $2,446.3 million. Organic sales rose 11% on the back of strong price realization and continued growth in Light Commercial, Residential HVAC and Fire Detection products. The segment’s adjusted EBITA came in at $533 million, up 21% year over year, aided by higher volumes, positive mix and pricing actions.
Financial Position
Johnson Controls had cash and cash equivalents of $2,031 million as of Sep 30, 2022, compared with $1,336 million at the end of the year-ago period. Long-term debt was $7,426 million compared with $7,506 million in the year-ago period. Free cash flow was $1,398 million during fiscal 2022 compared with $1,999 million at the end of the year-ago period. The company repurchased 21.7 million shares for approximately $1.4 billion during fiscal 2022.
Q1 Guidance
Johnson Controls expects adjusted earnings of 65-67 cents per share for the first quarter of fiscal 2023. The mid-point of the guided range — 66 cents — matches the Zacks Consensus Estimate. The company expects low double-digit organic revenue growth in the first quarter of fiscal 2023.
Adjusted segment EBITA margin is expected to improve 120 to 130 basis points in the fiscal first quarter.
Fiscal 2023 Guidance
For fiscal 2023, Johnson Controls anticipates adjusted earnings of $3.20-$3.60 per share, indicating growth of 7-20% year over year. The mid-point of the guided range — $3.40 — lies below the Zacks Consensus Estimate of $3.54.
The company expects organic revenue growth of high single-digits to low double-digits year over year. Adjusted segment EBITA margin is predicted to improve 80 to 120 basis points year over year.
Zacks Rank & Key Picks
Johnson Controls currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
Enerpac Tool Group Corp. (EPAC - Free Report) delivered an average four-quarter earnings surprise of 3.4%. EPAC presently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
Enerpac Tool has an estimated earnings growth rate of 44.6% for the current fiscal year. The company’s shares have rallied 23.2% in the past three months.
iRobot Corporation (IRBT - Free Report) presently has a Zacks Rank of 2 (Buy). IRBT’s earnings surprise in the last four quarters was 59.1%, on average.
iRobot has an estimated earnings growth rate of 36.6% for the current year. The stock has gained 10.9% in the past three months.
Reliance Steel & Aluminum Co. (RS - Free Report) presently carries a Zacks Rank of 2. Its earnings surprise in the last four quarters was 13.6%, on average.
Reliance Steel has an estimated earnings growth rate of 29.7% for the current year. The stock has appreciated 7.2% in the past three months.