Johnson Controls Updates FY24 Guidance; George Oliver To Retire As CEO

(RTTNews) - Johnson Controls (JCI) tightened its fiscal 2024 EPS guidance. Adjusted EPS before special items is now projected in a range of approximately $3.66 to $3.69, revised from prior guidance of approximately $3.60 to $3.75. Organic sales growth is projected to be approximately 3% year-over-year.

For the fourth quarter, the company expects: adjusted EPS before special items of approximately $1.23 to $1.26; and organic sales growth of 7% year-over-year.

Third quarter bottom line totaled $975 million, or $1.45 per share compared with $1.05 billion, or $1.53 per share, in last year's third quarter. Adjusted earnings per share was $1.14 compared to $1.03. Analysts on average had expected the company to earn $1.08 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items. The company's revenue for the quarter rose 1.4% to $7.23 billion from $7.13 billion last year.

Separately, Johnson Controls announced that George Oliver has informed the Board of Directors that it is time to initiate the CEO succession plan. The Johnson Controls Board has begun a comprehensive search for the next CEO with the assistance of a nationally recognized executive search firm. Oliver will continue to serve as chairman and CEO until a successor is named and will remain chair of the Board once the new CEO is named.

Following a constructive dialogue with Elliott Investment Management L.P., Johnson Controls appointed Patrick Decker to serve on its Board, effective immediately. Decker previously served as president and CEO of Xylem Inc.

Shares of Johnson Controls are up 8% in pre-market trade on Wednesday.

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