Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Akanksha Bakshi

Why Are Johnson Controls Shares Trading Lower Today

  • Johnson Controls International PLC (NYSE:JCI) reported second-quarter sales growth of 9% year-over-year to $6.1 billion, beating the consensus of $5.86 billion.
  • Sales by segments: Building Solutions North America $2.23 billion (+6% Y/Y), EMEA/LA $958 million (+3% Y/Y), Asia Pacific $623 million (+5% Y/Y).
  • Global Products sales increased 16% Y/Y to $2.29 billion, and Organic sales grew 14% Y/Y, driven by strong pricing and broad-based demand for Commercial and Residential HVAC and Fire & Security products.
  • Adjusted EPS was $0.63 (+21% Y/Y), beating the consensus of $0.60.
  • The company reported field orders increase of 11% YY, with broad-based strength across regions, and Service orders grew 8% Y/Y.
  • Backlog was $10.9 billion, an increase of 12% Y/Y organically.
  • The gross margin declined by 264 bps to 32.1%. Adjusted EBIT was $608 million, and adjusted EBIT margin was 10.0%, up 40 bps versus the prior year.
  • JCI cash used in operating activities from continuing operations was $(68) million for the quarter, and capital expenditures were $(125) million, resulting in a free cash outflow from continuing operations of $(193) million.
  • Cash provided by operating activities from continuing operations for six months was $324 million, compared to $1.16 billion a year ago.
  • Johnson Controls repurchased ~7.3 million shares for $509 million.
  • 3Q22 Outlook: Johnson Controls expects Organic revenue up high-single digits year-over-year and adjusted segment EBITA margin to decline by 80 - 100 basis points.
  • FY22 Guidance: JCI expects Organic revenue growth of 8% - 10%, and Adjusted EPS of $2.95 - $3.05 (down from prior expectation of $3.22 - $3.32), vs. consensus of $3.11.
  • Price Action: JCI shares are trading lower by 11.8% at $54.58 during the premarket session on Wednesday.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.