Johnson Controls Affirms Q2 Outlook, Lifts FY21 Earnings Outlook - Quick Facts

Johnson Controls International plc (JCI) on Wednesday provided details of its multi-year SG&A cost reduction actions designed to further optimize its overall cost structure and boost margins. The company also raised its earnings outlook for fiscal 2021.

The company noted that the cost reduction actions will deliver annualized savings of $300 million by fiscal year-end 2023 and are incremental to ongoing improvements in underlying fundamentals.

Johnson Controls estimates one-time pretax costs associated with these actions of $240 million, a majority of which is expected to be recorded in fiscal 2021.

As a result of these actions, Johnson Controls raised its outlook for fiscal 2021 adjusted earnings per share to a range of $2.50 to $2.60 from the prior range of $2.45 to $2.55.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $2.53 per share for the year. Analysts' estimates typically exclude special items.

However, the company maintained its outlook for full year organic revenue growth of up low-to-mid single digits, and FCF conversion of 100 percent.

In addition, Johnson Controls affirmed its outlook for the second quarter of adjusted earnings in a range of $0.47 to $0.49 per share on a slight growth in organic revenue. The Street expects earnings of $0.48 per share for the quarter on revenues of $5.58 billion.

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