Johnson Controls (JCI) Q1 Earnings & Revenues Beat Estimates

Johnson Controls International plc JCI reported adjusted earnings of 54 cents per share in first-quarter fiscal 2018, beating the Zacks Consensus Estimate of 51 cents per share. Moreover, earnings increased 2% from 53 cents per share registered in first-quarter fiscal 2017.

Operational Update

Johnson Controls reported revenues of $7.44 billion, surpassing the Zacks Consensus Estimate of $7.19 billion. Adjusted revenues in first-quarter 2017 came in at $7.10 billion.

Cost of sales increased to $5.27 billion from $4.97 billion in the year-ago quarter. Gross profit increased to $2.17 billion from $2.11 billion in the year-ago quarter.

Selling, general and administrative expenses in fiscal first quarter totaled $1.42 billion, decreasing from the prior-year quarter figure of $1.57 billion.

Segment Results

Building Technologies & Solutions: This segment’s adjusted revenues came in at $5.3 billion, increasing from the year-ago quarter figure of $5.2 billion.

Segment EBITA decreased to $559 million from $578 million in first-quarter 2017.

Power Solutions: Adjusted revenues at the Power Solutions segment increased to $2.13 billion from $1.90 billion in first-quarter 2017. Segment EBITA came in at $384 million, down from first-quarter 2017 figure of $390 million.

Financial Position

Johnson Controls had cash and cash equivalents of $552 million as of Dec 31, 2017, increasing from $321 million as of Sep 30, 2017. Long-term debt declined to $10.9 billion in the quarter from $11.7 billion as of Sep 30, 2017.

In the reported quarter, the company repurchased 3.6 million shares for $150 million.

Guidance

Johnson Controls reaffirmed its guidance for fiscal 2018. Fiscal 2018 adjusted EPS is projected to be in the range of $2.75 to $2.85.

Zacks Rank & Key Picks

Johnson Controls currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the auto space are Oshkosh Corporation OSK, Daimler A.G. DDAIF and Allison Transmission Holding, Inc. ALSN, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oshkosh has an expected long-term growth rate of 14.5%. Shares of the company have gained 34.6% in the last six months.

Daimler has an expected long-term growth rate of 2.8%. In the last six months, shares of the company have increased 31%.

Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have increased 19.3% in the last six months.

Johnson Controls International PLC Price, Consensus and EPS Surprise

Johnson Controls International PLC Price, Consensus and EPS Surprise | Johnson Controls International PLC Quote

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>  
 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Daimler AG (DDAIF) : Free Stock Analysis Report
 
Johnson Controls International PLC (JCI) : Free Stock Analysis Report
 
Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
 
Oshkosh Corporation (OSK) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research