Despite a challenging operating environment, Johnson Controls (JCI) delivered better-than-expected Fiscal Q1 2022 results. Persistent supply-chain disruptions and labor constraints could not stop revenue and earnings from topping consensus estimates. The company has also reaffirmed its 2022 guidance.
Johnson Controls is a technology and multi-industrial company specializing in the creation of intelligent buildings, air systems, HVAC controls, and security solutions.
Q1 Results
Sales in the quarter were up 10% year-over-year to $5.9 billion, beating consensus estimates of $5.1 billion. Adjusted net income from continuing operations increased 22% year-over-year to $380 million. The company also posted adjusted earnings per share of $0.54, up 26% year-over-year and better than consensus estimates of $0.47 a share.
Johnson Controls returned $500 million to shareholders during the quarter through stock buybacks. It also increased its dividend by 26% and deployed over $100 million in acquisitions.
For Fiscal Q2, Johnson Controls has guided for adjusted EPS of between $0.62 and $0.64, representing a 19% to 23% year-over-year increase. Full-year adjusted EPS is expected to range between $3.22 and $3.32, representing a 22% to 25% year-over-year increase.
According to Chief Executive Officer George Oliver, Johnson Controls is well-positioned to accelerate growth by leveraging the OpenBlue digital platform.
Stock Rating
Last month Jefferies analyst Stephen Volkmann reiterated a Buy rating on Johnson Controls stock with a $90 price target, implying 24.45% upside potential to current levels.
Consensus among analysts is a Strong Buy based on 9 Buys and 3 Holds. The average Johnson Controls price target of $86.33 implies 19.37% upside potential to current levels.
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