Johnson Controls Shares Jump on M&A Activity in Earnings Report

Johnson Controls JCI announced their third quarter earnings Thursday morning, causing shares to spike in the premarket. EPS landed at $0.83 with revenue at 10.8 billion for a 10.67 percent EPS beat and 1.73 percent revenue miss. This marks an 18 percent net income rise, year over year.

Perhaps the biggest event of the report was Johnson Controls announcing the sale of its Automotive Electronics’ HomeLink product line to Gentex GNTX for 700 million.

Looking forward to the fourth quarter, Johnson Controls expects earnings between $0.93 and $0.95. This would mean full year earnings would range from $2.64 and $2.66.

Related: Gentex to Acquire HomeLink from Johnson Controls for $700M

Stephen Roll, the Chairman of the Board, President and CEO, stated in the report, “Earlier this fiscal year, we said that our second half performance would be positively impacted by our restructuring initiatives, sequential improvements in Automotive Experience European and South American businesses, and profitability initiatives in Building Efficiency. We expect the benefits of these actions to deliver further improvements in our fourth fiscal quarter.”

Shares are up nearly five percent heading into the open at $39.15.