Johnson Controls Misses on Both Revenue and Earnings

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Johnson Controls (NYS: JCI) reported earnings on July 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q3), Johnson Controls missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share increased significantly.


Gross margins shrank, operating margins grew, net margins improved.

Revenue details
Johnson Controls reported revenue of $10.58 billion. The 21 analysts polled by S&P Capital IQ predicted revenue of $10.83 billion on the same basis. GAAP reported sales were 2.1% higher than the prior-year quarter's $10.36 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.64. The 23 earnings estimates compiled by S&P Capital IQ forecast $0.67 per share. GAAP EPS of $0.61 for Q3 were 17% higher than the prior-year quarter's $0.52 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 14.5%, 50 basis points worse than the prior-year quarter. Operating margin was 5.2%, 80 basis points better than the prior-year quarter. Net margin was 3.9%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $11.16 billion. On the bottom line, the average EPS estimate is $0.85.

Next year's average estimate for revenue is $42.73 billion. The average EPS estimate is $2.63.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,195 members out of 1,250 rating the stock outperform, and 55 members rating it underperform. Among 259 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 249 give Johnson Controls a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Johnson Controls is outperform, with an average price target of $39.33.

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The article Johnson Controls Misses on Both Revenue and Earnings originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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