Johnson Controls International plc (JCI – Free Report) is a supplier of automotive interiors, batteries, and other control equipment. The company is focused on a comprehensive cost saving program along with improving productivity.

Johnson Controls will benefit from acquisitions and mergers. Johnson Controls’ merger with Tyco is part of the former’s strategy to become a leading global multi-industrial company, which will enhance the buildings platform of Johnson Controls and augment its global businesses. Further, Johnson Controls has been focusing on market expansion in China as it anticipates significant growth opportunities therein. Moreover, the company is gaining strategic contracts which are aiding its business expansion.

However, the divestiture of several businesses has been weighing on Johnson Controls’ revenues. Negative foreign currency translation has also been affecting the company’s results. Due to these factors, investors have been eagerly awaiting Johnson Controls’ latest earnings report.

Estimate Trend & Surprise History

Investors should note that earnings estimate for Johnson Controls for second-quarter fiscal 2017 has been stationary over the past month. Johnson Controls has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of 5.59%.

Johnson Controls International PLC Price and EPS Surprise

Johnson Controls International PLC Price and EPS Surprise | Johnson Controls International PLC Quote

Earnings

Johnson Controls delivered adjusted earnings per share of 50 cents in the second quarter of fiscal 2017, in line with the Zacks Consensus Estimate. Earnings per share rose 11% year over year from 45 cents recorded in the second quarter of fiscal 2016.

Revenues

Johnson Controls reported revenues of $7,267 million, ahead of the Zacks Consensus Estimate of $7,053 million.

Key Stats/Developments to Note

Johnson Controls trimmed the lower end of its adjusted earnings per share (EPS) range to $2.60–$2.68 for fiscal 2017 from the prior band of $2.60–$2.75. This new guidance represents a year-over-year increase of 13–16%. The company also guided third quarter 2017 adjusted EPS range of $0.70 to $0.73, an increase of 15–20% year-over-year.

Zacks Rank

Currently, Johnson Controls has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released.

Market Reaction

Johnson Controls’ shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.