Yahoo Finance Johnson Controls (JCI) Shares Skyrocket, What You Need To Know
What Happened:
Shares of building operations company Johnson Controls (NYSE:JCI) jumped 9.2% in the pre-market session after the company reported second-quarter earnings results, with EPS exceeding analysts' estimates. Full-year EPS guidance was also ahead of expectations. On the other hand, its revenue unfortunately missed. Strategically, the company "announced divestitures of our R&LC HVAC and Air Distribution Technologies businesses, representing roughly 20% of sales, marking a pivotal milestone in our transformation into a pure-play provider of comprehensive solutions for commercial buildings and is a significant step to unlock value for our shareholders." Overall, this quarter was still solid. After the initial pop the shares cooled down to $72.04, up 4.4% from previous close.
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What is the market telling us:
Johnson Controls's shares are not very volatile than the market average and over the last year have had only 4 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Johnson Controls is up 26.3% since the beginning of the year, and at $72.04 per share it is trading close to its 52-week high of $73.90 from May 2024. Investors who bought $1,000 worth of Johnson Controls's shares 5 years ago would now be looking at an investment worth $1,698.
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