Johnson Controls Earnings: Cyberattack Impacts Q4; Management Sees Growth and Margin Gains in 2024

Johnson Controls’ release of its fiscal fourth-quarter and full-year 2023 results was delayed about a month due to a late September cyberattack that disrupted some of its internal information technology systems, including financial reporting systems. Management said the incident is now behind the firm, although it did result in $60 million of lost or deferred revenue during the fourth quarter and was about a 40-basis-point headwind to segment adjusted EBITA margin. Even so, fourth-quarter organic revenue still increased 2% year over year and adjusted EPS was 6% higher than the year-ago quarter. Nevertheless, fourth-quarter revenue of $6.9 billion and adjusted EPS of $1.05 missed FactSet consensus estimates by 3% and 4%, respectively, and Johnson Controls’ shares fell over 7% during Dec. 12 intraday trading.