Will Johnson Controls Miss Estimates Again?
Key Trends In The Quarter:
1) Possible Growth Slowdown In The Building Efficiency Segment
- In Q1, net sales grew at a high rate of 18% over the previous year.
- Fewer secured federal jobs, and weakness in China and the Middle East may hamper earnings.
- 30 basis points improvement in margins expected for the year.
2) Contraction In Margins In The Power Solutions Segment
- In Q1, Power Solutions segment boasted a 260 basis points margin improvement.
- This was due to a favorable currency impact and a 16% fall in lead prices over Q1 2015.
- In comparison to this strong improvement in the previous quarter, a margin contraction may occur.
3) Effects Of M&A Activity
- JCI is expecting market share gain in Asia as a consequence of its partnership with Hitachi.
- Spin-off of its automotive seating and interiors business into Adient is expected to be completed in October.
- Merger with Tyco, to close before end of its fiscal year, will result in $500M in operational synergies and $150M in tax synergies.
- Q4’23 Earnings Preview: Down 21% YTD Will Johnson Controls Stock Continue To Underperform?
- What’s Next For Johnson Controls Stock After An 8% Fall Yesterday?
- Margin Expansion To Drive Johnson Controls’ Q3?
- What’s Next For Johnson Controls Stock After An Upbeat Q2?
- Here’s What To Expect From Johnson Controls’ Q2
- Here’s What To Expect From Johnson Controls’ Q1
Have more questions on Johnson Controls? See the links below:
- How Has Johnson Controls’ Net Sales Changed By Geographic Areas?
- How Does The Adient Spin-Off And Tyco Merger Create Value For Johnson Controls’ and Tyco’s Shareholders?
- What Costs Did Johnson Controls’ 2015 Restructuring Plan Entail?
- Johnson Controls: Year 2015 In Review
- How Will Johnson Controls’ Revenue And EBITDA Composition Change In The Next 3 Years?
- How Has Johnson Controls’ Revenue And EBITDA Composition Changed In The Last 5 Years?
- What’s Johnson Controls’ Fundamental Value Based On Expected 2016 Results?
- By What Percentage Did Johnson Controls’ Revenue & EBITDA Grow In The Last 5 Years?
- What’s Johnson Controls’ Revenue And EBITDA Breakdown?
Notes:
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