The 10-second takeaway
For the quarter ended March 31 (Q2), Johnson Controls met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Gross margins increased, operating margins were steady, and net margins contracted.
Johnson Controls reported revenue of $10.57 billion. The 21 analysts polled by S&P Capital IQ predicted revenue of $10.59 billion on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $10.14 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.53. The 24 earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share. GAAP EPS of $0.53 for Q2 were 3.9% higher than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.7%, 20 basis points better than the prior-year quarter. Operating margin was 4.5%, about the same as the prior-year quarter. Net margin was 3.4%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.99 billion. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $43.46 billion. The average EPS estimate is $2.75.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,193 members out of 1,247 rating the stock outperform, and 54 members rating it underperform. Among 296 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 290 give Johnson Controls a green thumbs-up, and six 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 $40.33.
Can your retirement portfolio provide you with enough income to last? You'll need more than Johnson Controls. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Johnson Controls to My Watchlist.
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 of Motley 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.