Post Earnings Coverage as Johnson Controls' EPS Jumped 11%, Announced a $500 Million Increase in Share Repurchase Program
ACCESS Newswire
Upcoming AWS Coverage on LKQ Corp. Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 8, 2017 / Active Wall St. announces its post-earnings coverage on Johnson Controls International PLC (NYSE: JCI). The Company posted its second quarter fiscal 2017 results on April 27, 2017. The maker of automotive batteries and building heating and cooling systems met earnings forecasts and exceeded sales expectations. Register with us now for your free membership at:
One of Johnson Controls International's competitors within the Auto Parts space, LKQ Corp. (NASDAQ: LKQ), reported record revenue as part of its Q1 2017 earnings release on April 27, 2017. AWS will be initiating a research report on LKQ Corp. in the coming days.
Today, AWS is promoting its earnings coverage on JCI; touching on LKQ. Get our free coverage by signing up to:
For the three months ended March 31, 2017, Johnson Controls reported adjusted sales of $7.24 billion, up 3% compared to sales of $7.06 billion in Q2 FY16. The Company's organic sales growth of 2% and higher lead pass-through were partially offset by the negative impact of net acquisition and divestiture activity and changes in foreign currency exchange rates. Johnson Controls' sales numbers had outperformed analysts' consensus of $7.05 billion.
For Q2 FY17, Johnson Controls Earnings before interest and taxes ("EBIT") was $509 million and EBIT margin was 7.0%. The Company's adjusted EBIT was $711 million, up 5% on a y-o-y basis with adjusted EBIT margin expansion of 20 basis points, to 9.8%.
Johnson Controls reported Q2 FY17 net income from continuing operations rose to $473 million, or $0.50 per share, compared to $426 million, or $0.45 per share, in Q2 FY16. The results met Wall Street's expectations of $0.50 per share.
Segment Results
For Q2 FY17, Johnson Controls' Buildings sales were $5.5 billion, up 1% on a y-o-y basis. Excluding M&A and foreign exchange, the segment's organic sales increased 3% compared to the year ago same period led by a 4% growth in field sales, which were partially offset by a 1% decline in product sales. The segment's orders in Q2 FY17, excluding M&A and adjusted for foreign exchange, increased 2% on a y-o-y basis, with 3% growth in field orders, including early cross-selling wins, and a 1% decline in product orders. Buildings' Backlog at the end of Q2 FY17 totaled $8.3 billion, up 6% on a y-o-y basis, excluding M&A and adjusted for foreign exchange.
For Q2 FY17, Buildings adjusted segment EBITA was $628 million, down 1% on a y-o-y basis, while adjusted segment EBITA margin of 11.3% reduced by 30 basis points compared with the prior year's same quarter as the benefit of volume leverage, productivity savings, and cost synergies were more than offset by incremental product and channel investments, as well as mix.
During Q2 FY17, Johnson Controls' Power Solutions segment's sales increased 7% to $1.70 billion. Excluding the impact of higher lead pass-through and foreign exchange, organic sales declined 1% versus the prior year, as positive mix was offset by lower unit volumes in North America and China. For the reported quarter, Power Solutions' Global original equipment battery shipments were consistent with the prior year, while aftermarket shipments fell 3% in the reported quarter due to timing of shipments related to customer demand patterns. The segments' Start-Stop battery shipments increased 36% on a y-o-y basis.
For Q2 FY17, Power Solutions adjusted segment EBITA was $303 million, up 7% on a y-o-y basis, driven by favorable product mix as well as productivity savings, partially offset by lower volumes and the impact of lead. The segment's adjusted segment EBITA increased 12% excluding the impact of foreign exchange and lead. Power Solutions' adjusted segment EBITA margin totaled 17.9%, up 10 basis points compared to the year earlier corresponding quarter, including a 220-basis point headwind related to the impact of lead.
Share Repurchase & Recent Borrowings
During Q2 FY17, Johnson Controls' repurchased $119 million of its shares and expanded its full year share repurchase program by $500 million. The Company now expects to complete up to $750 million of share repurchases during fiscal 2017.
On February 07, 2017, Johnson Controls' issued $500 million in 30 year senior notes at a fixed annual interest rate of 4.5%. Proceeds were used to repay outstanding commercial paper borrowings and for other general corporate purposes. On March 15, 2017, the Company issued €1 billion in 6.5 year senior notes at a fixed annual interest rate of 1.0%. Proceeds were used to repay existing debt and for other general corporate purposes.
Stock Performance
At the closing bell, on Friday, May 05, 2017, Johnson Controls International's stock climbed 1.21%, ending the trading session at $41.97. A total volume of 3.32 million shares were traded at the end of the day. In the last month and previous twelve months, shares of the Company have advanced 2.42% and 15.16%, respectively. Moreover, the stock gained 2.50% since the start of the year. The stock currently has a market cap of $39.53 billion and has a dividend yield of 2.38%.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
