The chart below shows how JCI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, JCI sees a -1.44% change in stock price 10 days leading up to the earnings, and a +3.29% change 10 days following the report. On the earnings day itself, the stock moves by -1.14%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Fiscal Performance: We ended fiscal 2024 with momentum, delivering double-digit organic revenue growth, robust margin expansion and 96% adjusted free cash flow conversion.
Data Center Demand Growth: Order growth of 7% in the year was led by data center demand and contributed to our record backlog, which ended the year at $13.1 billion.
Adjusted EPS Growth: Our adjusted EPS of $1.28 was up 22% year-over-year and exceeded the high-end of our guidance range by $0.02.
Free Cash Flow Improvement: Our adjusted free cash flow conversion of 96% was a strong improvement year-over-year and substantially exceeded our previous commitments.
Shareholder Returns Summary: For the full year, we returned $2.2 billion to shareholders via dividends and share repurchases.
Negative
Restructuring Expense Impact: Ongoing restructuring efforts are expected to incur approximately $400 million in expenses over the next three years, impacting future cost savings.
Projected EPS Challenges: The adjusted EPS for fiscal 2024 is projected at $3.21 per share, indicating potential challenges in achieving higher profitability.
Cash Flow Decline Anticipated: The company anticipates a decline in cash flow conversion rates due to ongoing restructuring and divestiture activities, which may affect liquidity.
Debt Reduction and Leverage: The net debt decreased to 2 times EBITDA, which is at the lower end of the long-term target of 2 to 2.5 times, indicating tighter financial leverage.
Margin Pressure Challenges: The company is facing significant pressure on margins due to increased operational costs and competitive market conditions.
Johnson Controls International plc (JCI) Q4 2024 Earnings Call Transcript
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