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Johnson Controls beats estimates on strong demand, raises annual profit guidance

Published 05/05/2023, 08:36 AM
Updated 05/05/2023, 08:40 AM
© Reuters. FILE PHOTO: 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
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(Reuters) - Johnson Controls (NYSE:JCI) International posted quarterly earnings ahead of analysts' expectations on Friday, underpinned by strong demand for heating and air-conditioning systems from commercial buildings, sending its shares nearly 5% higher before the bell.

The Ireland-headquartered company has benefited from a rise in infrastructure development, with new commercial and residential buildings requiring heating, ventilation, and air conditioning (HVAC).

The company bumped up the lower end of its full-year adjusted profit forecast range to $3.50 per share from $3.30 per share expected previously. It retained the higher end of its forecast range at $3.60 per share.

Johnson Controls provides building systems, such as security, ventilation, and fire detection systems, used in offices, schools and hospitals. It counts Siemens, Schneider and Honeywell (NASDAQ:HON) as its competitors.

© Reuters. FILE PHOTO: 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

The company's adjusted earnings came in at 75 cents per share for the second quarter, compared with 63 cents per share a year earlier. Revenue rose roughly 10% to $6.69 billion.

Analysts on average had expected a profit of 73 cents per share on revenue of $6.51 billion, according to Refinitiv data.

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