Will Johnson Controls Miss Estimates Again?

by Trefis Team
Johnson Controls
Rate   |   votes   |   Share

Screen Shot 2016-04-20 at 6.52.59 pm


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.


Have more questions on Johnson Controls? See the links below:


1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Johnson Controls.

View Interactive Institutional Research (Powered by Trefis):

Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research

Rate   |   votes   |   Share


Name (Required)
Email (Required, but never displayed)
Be the first to comment!