Johnson Controls Q3 Earnings: EPS Beat, CEO Succession, Tightens Annual Outlook & More

Johnson Controls International JCI shares are trading higher after releasing third-quarter results.

The company reported adjusted earnings per share of $1.14, beating the street view of $1.08. Quarterly sales of $7.231 billion missed the analyst consensus of $7.333 billion.

Sales in the quarter increased 1% over the prior year on an as reported basis and 3% organically.

Building Solutions North America sales in the quarter were $2.9 billion, an increase of 9% over the prior year. 

Building Solutions Europe, Middle East, Africa/Latin America sales in the quarter were $1.1 billion, up 3% year over year.

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Building Solutions Asia Pacific sales in the quarter of $575 million declined 22% versus the prior year.

Global Products sales in the quarter of $2.7 billion were flat versus the prior year.

Cash provided by operating activities was $1 billion. Free cash flow was $922 million, and adjusted free cash flow was $1.3 billion.

In a separate press release, the company announced that George R. Oliver will retire as CEO and remain chair of the Board following the appointment of a successor.

The company also advanced Board refreshment with the appointment of Patrick Decker as a new, independent director, following dialogue with Elliott Management.

Outlook: Johnson Controls has provided guidance for the fourth quarter of fiscal 2024.

The company expects organic sales to rise approximately 7% year-over-year. It anticipates an adjusted segment EBITA margin of around 19.0% and projects adjusted EPS before special items to be $1.23 – $1.26 (estimate: $1.20).

Johnson Controls has refined its fiscal 2024 EPS guidance. Adjusted EPS before special items is now forecasted to be between $3.66 and $3.69 (estimate: $3.58), slightly tightened from the earlier estimate of $3.60 to $3.75.

Price Action: JCI shares are trading higher by 8.66% to $75.01 premarket at last check Wednesday.

Photo via Wikimedia Commons

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