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Johnson Controls International PLC JCI

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Morningstar’s Analysis

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Johnson Controls Raises Fiscal 2021 Guidance and Announces Another Cost-Reduction Plan

Analyst Note

| Brian Bernard, CFA, CPA |

Narrow-moat-rated Johnson Controls raised its 2021 financial guidance after delivering a solid fiscal second-quarter performance that was in line with our expectations. Reported revenue increased about 3% year over year (1% organic) to $5.6 billion (in line with FactSet consensus) as strong organic growth from the global products and Asia-Pacific installation and services (field) businesses was partially offset by weaker field revenue across the firm's other regions, including North America. That said, field orders increased 5% year over year in North America and across Europe, the Middle East, Africa, and Latin America, so we expect revenue growth will follow. Adjusted segment margin (excluding amortization and corporate expenses) expanded 130 basis points year over year to 12.7% and adjusted EPS increased 24% to $0.52 (versus the $0.49 FactSet consensus).

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Company Profile

Business Description

Johnson Controls manufactures, installs, and services HVAC systems, building management systems and controls, industrial refrigeration systems, and fire and security solutions. Commercial HVAC accounts for about 40% of sales, fire and security represents another 40% of sales, and residential HVAC, industrial refrigeration, and other solutions account for the remaining 20% of revenue. In fiscal 2020, Johnson Controls generated over $22 billion in revenue.

Contact
One Albert Quay
Cork, T12 X8N6, Ireland
T +353 214235000
Sector Industrials
Industry Engineering & Construction
Most Recent Earnings Mar 31, 2021
Fiscal Year End Sep 30, 2021
Stock Type
Employees 83,000

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