CORK, Ireland - Johnson Controls (NYSE:JCI) International plc (NYSE:JCI) reported a mixed fiscal second quarter with a slight earnings beat but disappointing sales figures.
The company posted an adjusted EPS of $0.78 for the quarter, modestly surpassing the analyst consensus of $0.75. However, revenue was essentially flat at $6.7 billion, falling just short of the expected $6.71 billion and showing no change from the previous year's same quarter.
Chairman and CEO George Oliver highlighted the company's achievements, stating, "We delivered another successful quarter, underscored by accelerating sales growth and margin expansion."
Despite flat sales, Johnson Controls saw organic growth of 1% and a 12% organic increase in orders YoY. The company also reported a robust Building Solutions backlog, which grew 10% organically YoY to $12.6 billion, providing a solid foundation for future revenue.
For the third quarter of fiscal 2024, Johnson Controls anticipates organic revenue to increase by a low single-digit percentage YoY and projects an adjusted EPS in the range of $1.05 to $1.10. This guidance falls below the analyst consensus of $1.12, potentially contributing to the stock's 1.6% decline after the announcement.
The company's full-year guidance remains unchanged, with expected organic revenue growth in the mid-single digits and an adjusted EPS forecast of $3.60 to $3.75, aligning with the lower end of the consensus estimate.
The stock's movement reflects investor reaction to the soft sales performance, which appears to be the primary driver behind the modest market response. Despite the slight downturn, the company's management remains confident in their strategic direction and financial outlook for the remainder of the fiscal year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.