Johnson Controls Dips Over 6% After Q2 Earnings - Here's Why
Portfolio Pulse from Nabaparna Bhattacharya
Johnson Controls International Plc (NYSE:JCI) reported Q2 earnings with an EPS of 78 cents, surpassing expectations of 75 cents, but missed revenue forecasts with $6.699 billion against an expected $6.72 billion. Sales remained flat compared to the previous year, with a slight organic increase of 1%. The company took a $750 million pre-tax charge for a settlement related to its subsidiary's product. Organic orders grew by 12% year-over-year, and the Building Solutions North America segment saw a margin increase. The Q3 EPS outlook is slightly below estimates, but full-year EPS expectations are maintained. JCI shares dropped 6.65% to $60.73.
May 01, 2024 | 4:05 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Johnson Controls reported higher than expected Q2 EPS but missed revenue targets and announced a significant legal settlement charge, leading to a 6.65% drop in share price.
The drop in JCI's share price can be attributed to the mixed earnings report, with a beat on EPS but a miss on revenue expectations. Additionally, the significant pre-tax charge for a legal settlement likely contributed to investor concerns, overshadowing the positive aspects of the report such as organic order growth and margin expansion in the Building Solutions North America segment. The slightly disappointing Q3 EPS outlook compared to estimates may also weigh on short-term sentiment.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100