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On Dec 14, we issued an updated research report on Johnson Controls International plc (NYSE:JCI) .
Johnson Controls International is a diversified technology and a multi industrial company. In recent times, the company has resorted to divestiture of several businesses, which is adversely impacting the company’s profits and revenues. Notably, in October 2017, the company closed the divestiture of Scott Safety to 3M. Prior to this, on March 2017, the company also closed the divestiture of its ADT South Africa business. High separation costs associated with these divestitures are straining its revenues and profits.
In Oct 2017, the company completed divesting Scott Safety to 3M. Prior to this, in March 2017, the company also completed the divestiture of its ADT South Africa business. These divestitures are resulting in high separation costs, thus adversely affecting its revenues and profits.
The company is also vulnerable to volatility in commodity prices. Commodities with high volatility used in the Building Efficiency business are steel, aluminum, copper and fuel, while lead is used in the Power Solutions business.
Over the past 30 days, the Zacks Consensus Estimate for the company’s yearly earnings has declined 0.7% to $2.78 per share. Shares of the company have underperformed the industry it belongs to in the last six months. The company’s share price has declined 10.8%, while the industry lost 5.4%.
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