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Johnson Controls faces potential earnings risk following cybersecurity breach

EditorAmbhini Aishwarya
Published 09/28/2023, 01:29 AM
Updated 09/28/2023, 01:29 AM
© Reuters.

In a recent turn of events, building infrastructure supplier Johnson Controls (NYSE:JCI) International PLC (NYSE:JCI) disclosed an undated cybersecurity incident that disrupted their operations, according to a Security and Exchange Commission (SEC) filing late Wednesday. The company is currently investigating the breach in collaboration with external experts.

The cyber attack affected a portion of the company's IT infrastructure and applications, but many applications remained operational. The ongoing implications of the breach persist as a potential risk to the company's upcoming earnings. The exact extent of the disruption and its potential impact on future earnings remain unclear.

In light of the recent incident, it's noteworthy to consider Johnson Control's financial standing. The company has a solid market cap of $37.11 billion, according to InvestingPro data. With a P/E ratio of 18.19, the stock is currently trading at a relatively low price in relation to its near-term earnings growth. This is supported by the recent InvestingPro Tip, which highlights that the company is trading at a low P/E ratio relative to near-term earnings growth.

The company has not fully recovered from the cybersecurity incident, leaving some aspects of its IT infrastructure still vulnerable. This raises significant concerns about the potential impact on Johnson Control's financial performance, particularly in light of its forthcoming earnings report.

Johnson Controls, a prominent player in the Building Products industry according to InvestingPro Tips, has yet to provide further details about the nature and timeline of the cybersecurity incident or its plans for rectifying the situation. As investigations continue into this significant disruption, stakeholders will be watching closely to see how the situation evolves and what it means for the company's financial future.

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Notably, despite the recent price fall, the company has maintained a consistent dividend payment for 53 years, a testament to its financial stability. It's also worth mentioning that the company's revenue growth has been accelerating, with a quarterly growth of 7.85% as per InvestingPro data. The company's next earnings date is scheduled for November 9, 2023, where more light will be shed on the financial impact of the incident. For further insights, you can visit InvestingPro where there are seven additional tips about JCI.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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