Friday, November 21, 2014

Johnson Controls Earnings Analysis

It's been a difficult year for Johnson Controls (NYSE: JCI  ) investors, as they have watched their stock underperform the market. The market was looking for some signs of improvement in its fourth-quarter results. In the end, the company delivered a solid quarter with the headline numbers pretty much in line with expectations.

It's time to look at what happened in the fourth quarter, and to look for any indications of where the company is headed next.



Source: Johnson Controls.

Johnson Controls fourth-quarter results


A quick look at the headline numbers:

  • Fourth-quarter revenue of $11 billion versus analyst estimates of $11.2 billion
  • Fourth-quarter adjusted diluted EPS of $1.04 versus analyst estimates of $1.01 and internal guidance of $1-$1.02
  • First-quarter 2015 EPS guidance of $0.74-$0.77 versus analyst estimates of $0.77

Fourth-quarter EPS is ahead of estimates, but the guidance for the first quarter is a little light compared to analyst estimates. In short, it was a mixed set of earnings, with sales up 3% and gross profit up 2%.


READ THE FULL EQUITY RESEARCH ARTICLE LINKED