The AI revolution is spurring investment in data centers, and that's adding to the growth prospects of this industrial company.It's no secret that Nvidia's (NVDA -1.95%) stock price has surged in recent years thanks largely to its association with artificial intelligence (AI), particularly the massive spending being done to expand data center computing power. Along with the price surge has come a surge in valuation for the stock.If you are the type of investor who doesn't like buying hot stocks at hefty val ...

Johnson Controls International PLC JCI is scheduled to report its fiscal fourth-quarter results on Dec. 10, after having delivered an earnings beat for the previous quarter. While the company has significant exposure to data centers, among the more profitable verticals, the naming of its new CEO is likely to act as a catalyst for the stock, according to BofA Securities.Analyst Andrew Obin upgraded the rating for Johnson Controls International from Neutral to Buy, while raising the price target from $76 to $ ...

sturti/E+ via Getty Images Strategic Focus With the recent announcement that it is selling its residential Heating Ventilation & Air Conditioning (HVAC) business, Johnson Controls (NYSE:JCI) is taking a major step to refine its portfolio. This is enabling it to firmly define itself as a "Comprehensive Solutions Provider for Commercial Buildings." Its suite of comprehensive solutions includes HVAC, fire safety, controls, security, and related services. Roughly 10% of the business will still be non-core after ...

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Johnson Controls International plc (JCI) reported third-quarter fiscal 2024 (ended June 2024) adjusted earnings of $1.14 per share, which beat the Zacks Consensus Estimate of $1.08. The bottom line increased 11% year over year.Total revenues of $7.2 billion missed the consensus estimate of $7.4 billion. The top line increased 1% year over year while organic revenues inched up 3%.Segmental ResultsBuilding Solutions North America: Revenues were $2.9 billion, up 9% year over year. Our estimate was $2.9 billion ...

Financial Data and Key Metrics - Organic sales growth was 3%, in line with the guidance of low single-digits [6] - Segment margin expanded by 150 basis points to 17.9%, exceeding the guidance of 17% [7] - Free cash flow generation was more than $500 million higher than the comparable period one year ago [7] - Orders grew 5% during the quarter, with backlog increasing by 10% [7][8] - Adjusted EPS of $1.14 was up 11% year-over-year, exceeding the high end of the guidance range by $0.04 [20] - Net debt decreased to 2.3 times, within the long-term target range of 2 to 2.5 times [20] - Adjusted free cash flow improved approximately $700 million year-over-year to $1.3 billion [20] Business Line Performance - Service led with 9% growth, validating the company's transformation efforts [7] - Global Products business grew 3% year-over-year, with Commercial HVAC growing mid-single digits [21] - Fire & Security declined low single-digit, while Industrial Refrigeration grew approximately 20% [21] - Building Solutions orders grew 5%, with service orders up 12% and systems orders up 2% [22] - North America sales grew 8% organically, with HVAC & Controls up over 20% year-over-year [23] - EMEA/LA orders grew 11%, with service up over 25% [24] - Asia Pacific sales declined 19%, primarily due to weakness in China's systems business [26] Market Performance - North America system business grew 9%, while service grew 6% [23] - EMEA/LA sales grew 8% organically, with service up 15% year-over-year [24] - Asia Pacific service business grew 8%, despite a 19% decline in overall sales [26] Strategic Direction and Industry Competition - The company is transforming into a pure-play provider of comprehensive solutions for commercial buildings, focusing on commercial HVAC, fire, controls, security, and services [13][14] - Data center exposure increased to nearly 10% of sales, up from 7% in fiscal year 2023, with expectations for further growth [14] - The company announced divestitures of its Residential and Light Commercial HVAC business and Air Distribution Technologies business, representing roughly 20% of current sales [8][11] - The company is focusing on delivering safe, healthy, and sustainable buildings, leveraging integrated domain expertise and an extensive branch network [15][16] Management Commentary on Operating Environment and Future Outlook - The company is tightening its full-year adjusted EPS guidance to a range of $3.66 to $3.69 [10] - The company expects strong double-digit growth in the data center vertical, with robust demand continuing to accelerate over the next few years [32][33] - The company is confident in its ability to deliver sustainable long-term growth, driven by a resilient service business and continued demand in North America's system business [26][27] Other Important Information - The company initiated a CEO succession plan, with George Oliver remaining as Chairman of the Board to facilitate a smooth transition [9] - Patrick Decker was appointed to the Board of Directors, bringing experience in leading a transformation at his prior company [10] - The company expects to report the Residential and Light Commercial HVAC business in discontinued operations beginning in the fiscal fourth quarter of 2024 [12] Q&A Session Summary Question: Impact of data center growth on backlog - Data center backlog is expected to grow strongly, with the business now representing about 10% of sales, up from 7% a year ago [32][33] - The company expects strong double-digit growth in the data center vertical, with multiyear agreements contributing to large orders [89] Question: Long-term growth outlook and Fire & Security business - The company expects mid-single-digit growth in the long term, driven by mid- to high single-digit growth in the service business and mid-single-digit growth in the systems business [41] - Fire & Security is expected to maintain mid-single-digit growth, with the service and recurring component driving higher growth [42] Question: CEO succession timeline and Board appointment - The CEO succession plan is underway, with both internal and external candidates being considered [45] - Patrick Decker's appointment to the Board reflects the company's commitment to refreshing the Board with relevant skills and experience [10][45] Question: Free cash flow and capital deployment - The company expects adjusted free cash flow conversion of approximately 85% or better for the full year [27] - Proceeds from divestitures will be used for share repurchases, debt paydown, and restructuring to offset stranded costs [29][68] Question: Asia Pacific recovery and backlog growth - The company expects a recovery in Asia Pacific in fiscal year 2025, with sequential improvement in orders and backlog [71][72] - The company remains disciplined in its approach to the Chinese market, focusing on attractive opportunities and counterparties [72] Question: Portfolio changes and leverage strategy - The company plans to return most of the net proceeds from divestitures to shareholders through share repurchases, while maintaining its investment-grade rating [68] - The company is confident in its ability to deliver consistent, predictable results following the portfolio transformation [30] Question: Data center and liquid cooling technologies - The company is well-positioned in the data center market, with investments in liquid cooling technologies and partnerships to provide full solutions [80][81] Question: CEO search attributes - The company is looking for a CEO with strong operating experience, domain expertise, and the ability to lead the next phase of growth [84][85] Question: Order acceleration and pipeline visibility - The company expects lumpiness in orders due to the data center vertical, with large multiyear orders contributing to growth [87][89] Question: Fourth-quarter EBITA margin visibility - The company has strong visibility into the 19% EBITA margin for the fourth quarter, driven by backlog conversion and improved productivity [92]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From _____ To _____ Commission File Number: 001-13836 JOHNSON CONTROLS INTERNATIONAL PLC (Exact name of registrant as specified in its charter) | --- | --- | --- | |---------- ...

Johnson Controls (JCI) came out with quarterly earnings of $1.14 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.56%. A quarter ago, it was expected that this diversified technology and industrial company would post earnings of $0.75 per share when it actually produced earnings of $0.78, delivering a surprise of 4%.Over the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): July 23, 2024 JOHNSON CONTROLS INTERNATIONAL PLC (Exact name of registrant as specified in its charter) Ireland 001-13836 98-0390500 (State or Other Jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification Number) One Albert Quay. Cork, Ireland, T12 X8N6 (Address ...

Johnson Controls International plc (JCI) is scheduled to release third-quarter fiscal 2024 (ended June 2024) financial numbers on Jul 31, before market open.The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing in one. The average earnings surprise was 0.6%. In the last reported quarter, its earnings of 78 cents per share beat the consensus estimate of 75 cents by 4%.The consensus estimate for fiscal third-quarter revenues is pegged at $7.36 billion ...