Building operations company Johnson Controls (NYSE: JCI) will be announcing earnings results this Wednesday morning. Here’s what investors should know.
Johnson Controls beat analysts’ revenue expectations last quarter, reporting revenues of $6.14 billion, up 8.2% year on year. It was a strong quarter for the company, with full-year EPS guidance beating analysts’ expectations and a beat of analysts’ EPS estimates.
Is Johnson Controls a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Johnson Controls’s revenue to grow 6.6% year on year, improving from the 2.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Johnson Controls has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Johnson Controls’s peers in the commercial building products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Apogee’s revenues decreased 1.1% year on year, beating analysts’ expectations by 3.4%, and AZZ reported revenues up 6.3%, topping estimates by 3.2%. AZZ traded down 1.9% following the results.
Read our full analysis of Apogee’s results here and AZZ’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the commercial building products stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Johnson Controls is up 2.2% during the same time and is heading into earnings with an average analyst price target of $156.37 (compared to the current share price of $143.51).
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