Why Is Johnson Controls Stock Taking A Hit Today?

Johnson Controls International Plc JCI shares are trading lower on Tuesday.

The company reported first-quarter revenues of $6.094 billion, missing the analyst consensus of $6.12 billion. 

Revenues were flat compared to the prior year on an as-reported basis and declined 1% organically. 

The company said it is in the early stages of pursuing strategic alternatives for non-commercial businesses.

Quarterly adjusted EPS of $0.51 was in line with the street view.

First-quarter orders rose 1% organically year-over-year, with building Solutions backlog of $12.1 billion that increased 7% organically year-over-year.

“After managing through a temporary cyber disruption and the seasonality of the first quarter, we are entering the new calendar year with accelerating momentum,” said Johnson Controls Chairman and CEO George Oliver. 

The company exited the quarter with cash and equivalents worth $1.801 billion.

Outlook: The company initiated fiscal 2024 second-quarter guidance. 

For Q2, the company expects organic revenue to be flat year-over-year, adjusted segment EBITA margin of ~14.5% and adjusted EPS before special items of $0.74-$0.78 (street view: $0.78).

Johnson Controls cuts FY24 adjusted EPS outlook from $3.65-$3.80 to $3.60-$3.75 (street view: $3.66).

For FY24, the company sees adjusted segment EBITA margin improvement of 50 to 75 basis points, year-over-year (previously guided to 25+ basis points improvement).

Price Action: JCI shares are trading lower by 4.78% to $53.94 on the last check Tuesday. 

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