Johnson Controls Inc. JCI is a supplier of automotive interiors, batteries, and other control equipment. The company is focused on a comprehensive cost saving program along with improving productivity. The company is gaining from its market expansion in China. It anticipates significant growth opportunities in the nation. In addition, Johnson Controls will benefit from the acquisitions and mergers that it undertakes to provide customers with world-class technologies through strong complementary brands and channels.
However, the divestiture of several businesses has been weighing on the Johnson Controls’ revenues and profits. Negative foreign currency translation has also been affecting the company’s results. Due to this, investors are eagerly awaiting Johnson Controls’ earnings report.
Estimate Trend & Surprise History
Investors should note that the second-quarter (ended Mar 31, 2016) earnings estimate for Johnson Controls inched down by a cent over the past month.
Johnson Controls has a mixed history of earnings surprises. It has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters with a positive average beat of 1.13%.
Earnings Top Estimates
Johnson Controls delivered adjusted earnings per share of 86 cents in the second quarter of fiscal 2016, beating the Zacks Consensus Estimate of 82 cents. Adjusted earnings also increased 18% year over year.
Revenues Miss Estimates
Johnson Controls reported revenues of $9.03 billion, down 1.8% year over year. Revenues also missed the Zacks Consensus Estimate of $9.08 billion.
Key Stats/Developments to Note
For fiscal 2016, Johnson Controls raised its earnings per share guidance to $3.85–$4.00 from the prior projection of $3.70–$3.90, based on stronger operating performance and lower annual effective tax rate.
Johnson Controls expects earnings per share in the third quarter of fiscal 2016 to be in the range of $1.01–$1.04.
Zacks Rank
Currently, Johnson Controls has a Zacks Rank #2 (Buy), but that could change following its earnings report which has just released.
Market Reaction
Johnson Controls’ shares have remained inactive so far following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on Johnson Controls’ earnings report!
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JOHNSON CONTROL (JCI): Free Stock Analysis Report
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