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Johnson Controls Beats Q4, Raises Guidance as Record Backlog Drives Shares Higher

Strength in data-center cooling plus decarbonization in the Americas lifted the order book to $15 billion despite China softness.

The logo and trading symbol for Johnson Controls International is displayed on a board on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 16, 2018. REUTERS/Brendan McDermid

Overview

  • Shares rose about 9% after the company posted adjusted EPS of $1.26 versus $1.20 expected and revenue of $6.44 billion versus $6.32 billion forecast.
  • Backlog reached a record $15 billion, up 13%, with management citing sustained demand in advanced data-center cooling and decarbonization solutions.
  • Management guided to first-quarter adjusted EPS of $0.83 and fiscal 2026 adjusted EPS of $4.55, both above consensus estimates.
  • Regional results showed continued strength in the Americas and solid growth in EMEA, while APAC declined on lower volumes in China.
  • Orders increased 7% for the year, and adjusted gross margin expanded to 36.7% as adjusted gross profit rose to $2.365 billion.