Johnson Controls International PLC raised its full-year profit forecast following a robust first quarter, as a 39% surge in orders for its climate-control systems pushed earnings and revenue past Wall Street expectations.
The Ireland-based industrial conglomerate reported net income of $524 million, or 90 cents per share, for the quarter ending in December. This represents a significant jump from the $419 million recorded during the same period last year. On an adjusted basis, the company earned 89 cents per share, outperforming the 85-cent consensus among analysts surveyed by FactSet.
Revenue for the period climbed 6.8% to $5.8 billion, exceeding the $5.64 billion anticipated by the market. The growth was primarily fueled by sustained demand for the company’s heating, ventilation, and air conditioning (HVAC) equipment, which has seen a resurgence as commercial and residential sectors prioritize climate control efficiency.
Strengthening Backlog and Future Outlook
Management highlighted a massive 39% increase in orders compared to the previous year, signaling a strong pipeline for the remainder of the fiscal year. This momentum has prompted Johnson Controls to raise its adjusted earnings projection for the full fiscal year to $4.70 per share, up from its previous estimate of $4.55.
For the upcoming second quarter ending in March, the company expects:
- Adjusted earnings of $1.11 per share.
- Organic sales growth of approximately 5%.
- Full-year organic sales growth in the mid-single digits.
The manufacturer's ability to maintain margins despite broader industrial headwinds suggests that its focus on smart building technologies and energy-efficient infrastructure is resonating with global clients. According to the report, the company anticipates that organic sales growth will remain steady throughout the fiscal year.
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