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Mar 31, 2022
Johnson Controls Q2 2022 Earnings Report
Delivered strong Q2 order, revenue, and EPS growth performance, but FY22 guidance was impacted by delayed backlog conversion resulting from supply chain volatility.
Key Takeaways
Johnson Controls reported a strong second quarter with order, revenue, and profit growth. Sales increased by 9% compared to the prior year, with organic sales also growing by 9%. Adjusted EPS was $0.63, up 21% versus the prior year. However, the company is experiencing near-term supply chain disruptions, leading to a revision of the fiscal 2022 adjusted EPS guidance.
GAAP EPS of $0.02; Adjusted EPS of $0.63, up 21% versus prior year
Reported sales +9% versus prior year; +9% organically
Field Orders +11% year-over-year, with broad-based strength across regions; Service orders +8%
Record Backlog of $10.9 billion, increased 12% organically year-over-year
Forward Guidance
The Company revised fiscal 2022 full year EPS guidance: Organic revenue growth of 8% to 10% year-over-year; Adjusted segment EBITA margin flat to down 30 basis points, year-over-year; Adjusted EPS before special items of $2.95 to $3.05; representing 11% to 15% growth year-over-year
Positive Outlook
- Organic revenue growth of 8% to 10% year-over-year
- Adjusted segment EBITA margin flat to down 30 basis points, year-over-year
- Adjusted EPS before special items of $2.95 to $3.05
- Adjusted EPS represents 11% to 15% growth year-over-year
- Third quarter guidance: Organic revenue up high-single digits year-over-year
Challenges Ahead
- Adjusted segment EBITA margin decline of 80 to 100 basis points, year-over-year
- Adjusted EPS before special items of $0.82 to $0.87
- Near term uncertainties related to the lockdown in China
Historical Earnings Impact
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Avg. Return Before/After Earnings
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