The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Johnson Controls missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins shrank, net margins shrank.
Johnson Controls logged revenue of $10.39 billion. The 21 analysts polled by S&P Capital IQ predicted sales of $10.86 billion on the same basis. GAAP reported sales were 3.7% lower than the prior-year quarter's $10.79 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 $0.77. The 25 earnings estimates compiled by S&P Capital IQ averaged $0.75 per share. GAAP EPS of $0.05 for Q4 were 90% lower than the prior-year quarter's $0.48 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 15.4%, 40 basis points better than the prior-year quarter. Operating margin was 2.7%, 120 basis points worse than the prior-year quarter. Net margin was 0.3%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.10 billion. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $42.27 billion. The average EPS estimate is $2.60.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,211 members out of 1,273 rating the stock outperform, and 62 members rating it underperform. Among 278 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 268 give Johnson Controls a green thumbs-up, and 10 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 $33.42.
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