Johnson Controls Gained 34% in the Second Half of 2022. Is the Worst Over?
Building controls, systems, heating, ventilation, air conditioning, and refrigeration (HVACR) company Johnson Controls (NYSE: JCI) had an eventful year. After a decline in the first half, the stock came roaring back with a nearly 34% increase in the second half.
The first-half decline was primarily due to management's decision to cut its full-year 2022 profit margin and earnings guidance. However, the supply chain disruptions and component availability issues were more significant than expected. For example, the company's controls systems, which tend to carry higher margins, use semiconductors and other IT components that became difficult to acquire, with the result that Johnson Controls couldn't ship as much product as it wanted.
Still, the company continued to report solid order growth and a record backlog and pushed through some impressive price increases through the rest of its financial 2022.
Source Fool.com
