Johnson Controls International Beats Expectations with Non-GAAP EPS of $0.75 and Revenue of $6.69B

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Johnson Controls International ($NYSE:JCI), a global leader in the building technology and solutions sector, recently released its financial report for the fourth quarter. The company reported Non-GAAP EPS of $0.75 and revenue of $6.69B, both exceeding expectations by $0.01 and $180M respectively. The strong performance of Johnson Controls International is attributed to the implementation of strategic initiatives, such as cost reduction and portfolio optimization, which have resulted in increased profitability throughout the course of the year. Furthermore, the company’s focus on increasing customer base, developing innovative products and expanding into new markets across the globe has enabled it to maintain its market position as a leading player in its industry.

The company’s fourth quarter result signals a strong outlook for the future as Johnson Controls International continues to embark on its journey to become a global leader in buildings technology and solutions. It is expected that the company will continue to capitalize on its strengths to drive growth in the coming quarters.

Market Price

This impressive performance sent JCI’s stock soaring, with the stock opening at $61.9 and closing at $62.1, representing a 6.1% increase from the previous closing price of $58.5. Encouragingly, JCI also reported organic revenue growth of 1% year-over-year and a five-quarter high in organic growth in its power solutions segment, which is responsible for around a third of the company’s total revenue. This was further complemented by the company’s Buildings segment, which achieved a six-year high in organic growth.

These two positive performances were further highlighted by the company’s strong cash flow from operations and disciplined approach to cost management. Collectively, these impressive results demonstrate that JCI is making significant progress towards its long-term goals of sustainable growth and value creation for its shareholders. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for JCI are shown below. More…

Analysis

At GoodWhale, we analyzed the fundamentals of JOHNSON CONTROLS INTERNATIONAL and found that it is classified as a ‘cow’ on our Star Chart. This means that the company has a track record of paying out consistent and sustainable dividends. Investors interested in dividend-paying stocks will most likely be interested in JOHNSON CONTROLS INTERNATIONAL. When analyzing JOHNSON CONTROLS INTERNATIONAL, we found that it is strong in dividends, medium in assets, profitability, and weak in growth. While the company may not have strong potential for growth, it has a high health score of 8/10 due to its cashflows and debt. This indicates that JOHNSON CONTROLS INTERNATIONAL is capable of sustaining future operations even in times of crisis. More…

Peers

Johnson Controls International PLC is a leading provider of controls and technology solutions for a variety of industries. The company’s products and services are used in a wide range of applications, including HVAC, security, fire, and energy management. Johnson Controls International PLC has a strong competitive position in the market and is well-positioned to continue its growth. The company’s competitors include Hochiki Corp, Geberit AG, and Rockwool AS.

– Hochiki Corp ($TSE:6745)

Hochiki Corp is a Japanese company that manufactures and sells fire protection equipment. The company has a market cap of 36.64 billion as of 2022 and a return on equity of 9.08%. Hochiki was founded in 1918 and is headquartered in Tokyo, Japan. The company’s products include fire alarm systems, fire extinguishers, and fire sprinklers. Hochiki also provides services such as fire safety consulting and training.

– Geberit AG ($OTCPK:GBERY)

Geberit AG is a Swiss company that manufactures and sells sanitary products. The company has a market cap of 15.16B as of 2022 and a Return on Equity of 29.76%. Geberit’s products include toilets, sinks, showers, and other plumbing products. The company has a strong presence in Europe and Asia.

– Rockwool AS ($LTS:0M09)

Rockwool International A/S is a Denmark-based company engaged in the manufacture of stone wool. The Company’s products are used for thermal and acoustic insulation, as well as for fire protection and horticultural substrates. It operates through two segments: Insulation and horticulture. The Insulation segment focuses on the manufacture of products for thermal and acoustic insulation in buildings, ships, cars and industrial applications. The Horticulture segment offers substrates for professional horticulture, including growers of fruit, vegetables and flowers. Rockwool International A/S has a market cap of 29.48B as of 2022, a Return on Equity of 10.81%.

Summary

The stock reacted positively to the news, with shares rising on the day of the announcement. Investors should consider Johnson Controls International a strong investment opportunity, given its positive earnings and revenue growth when compared to analyst expectations. Its strong financial performance demonstrates its willingness to invest in growth strategies, which may continue to increase profitability in the future.