Johnson Controls beats estimates on strong demand, raises annual profit guidance

(Reuters) – Johnson Controls (NYSE:) International posted quarterly earnings ahead of analysts’ expectations on Friday, underpinned by strong demand for heating and air-conditioning systems from commercial buildings, sending its shares nearly 5% higher before the bell.

The Ireland-headquartered company has benefited from a rise in infrastructure development, with new commercial and residential buildings requiring heating, ventilation, and air conditioning (HVAC).

The company bumped up the lower end of its full-year adjusted profit forecast range to $3.50 per share from $3.30 per share expected previously. It retained the higher end of its forecast range at $3.60 per share.

Johnson Controls provides building systems, such as security, ventilation, and fire detection systems, used in offices, schools and hospitals. It counts Siemens, Schneider and Honeywell (NASDAQ:) as its competitors.

The company’s adjusted earnings came in at 75 cents per share for the second quarter, compared with 63 cents per share a year earlier. Revenue rose roughly 10% to $6.69 billion.

Analysts on average had expected a profit of 73 cents per share on revenue of $6.51 billion, according to Refinitiv data.