Filed Under: ,
Tickers in this Article: JCI
Johnson Controls (NYSE:JCI) announced its results for the most recent quarter on October 30, 2012. Johnson Controls is a technology and industrial company focused on building efficiency, automotive experience and power solutions.

Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Everything Investors Need To Know About Earnings

The Numbers: Johnson Controls posted an EPS above analyst expectations, despite revenues falling short of predictions. The company reported adjusted net income of 77 cents per share versus the 75 cents per share estimate and revenues of $10.39 billion versus the $10.82 billion estimate. Diluted EPS for the quarter was a loss of one cent per share. Revenue fell 3.7% from the same period last year. Slumping revenue in the last quarter ends Johnson Controls' streak of four consecutive quarters of revenue increases. The company's net loss for the quarter was $8 million. The company's loss in the latest quarter comes after the company reported profits in the three prior quarters.

Management Quote: "While the macro-economic environment was challenging, in the fourth quarter we significantly improved profitability in Building Efficiency, Power Solutions and North America Automotive Experience. European automotive and buildings markets continued to soften in the quarter, offsetting our gains elsewhere," said Stephen A. Roell, Johnson Controls Chairman and Chief Executive Officer. "In response to the challenges in some of our key markets, we recently announced restructuring actions. We believe these initiatives better align resources with our current strategies and will help us to increase profitability in what we expect will be a low-growth environment next year."

Looking Ahead: Over the last 30 days, analysts have not been optimistic about the company's next-quarter performance. The average estimate for the first quarter of the next fiscal year is now 63 cents per share, down from 64 cents. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year has remained at $2.52 per share.

comments powered by Disqus

Trading Center