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Johnson Controls (NYSE:JCI) +4.3% in early trading Friday after edging past estimates for FQ2 adjusted earnings and revenues, and raising the low end of its full-year profit guidance, citing a strong order pipeline and margin expansion.
Q1 net income skyrocketed by 12x to $133M, or $0.19/share, from $11M, or $0.02/share, in the year-earlier quarter, and revenues rose 9.6% Y/Y to $6.69B.
Q1 cost of sales increased less than sales, up 7.3% Y/Y to $4.45B, and gross margin improved to 33.5% from 32.1% in the year-ago period.
Q1 sales by segment: Building Solutions North America sales up 13% Y/Y to $2.52B, Building Solutions Asia Pacific up 7% to $667M, Global Products up 8% to $2.47B.
The company had $7.7B in backlog at the end of the quarter, up 13% from the prior-year period, excluding M&A and adjusted for foreign currency
For Q3, Johnson Controls (JCI) guided for EPS of $1.01-$1.03, in line with $1.02 analyst consensus estimate, and sees Q3 organic revenue growth of ~10% Y/Y.
For the full year, the company bumped up the lower end of its full-year adjusted EPS forecast range to $3.50 from $3.30 previously, while maintaining the higher end of its forecast range at $3.60/share, in line with $3.52 consensus, and guided for ~10% organic revenue growth, after previously forecasting at a range from high single-digits to low double-digits growth.
“Our backlog remains resilient and the pace of converting higher margin business gives us confidence in our ability to deliver on our full year expectations,” CFO Olivier Leonetti said.