Johnson Controls Anticipates Solid Earnings Growth as Market Awaits Q1 Report
Johnson Controls International plc (JCI), based in Ireland, stands out as a major manufacturer and retrofitter of building products and systems. With a market capitalization of $52.1 billion, Johnson Controls operates across the U.S., Europe, and the Indo-Pacific, as well as other international markets. JCI is set to announce its Q1 earnings before the market opens on Tuesday, February 4.
Analysts Predict Profit Increase for JCI
Leading up to the earnings release, analysts forecast JCI will report a profit of $0.59 per share, reflecting a 15.7% increase from last year’s $0.51 per share. Notably, the company has exceeded Wall Street’s earnings expectations in each of the last four quarters.
Future Earnings Projections Show a Mixed Outlook
For fiscal year 2025, projections indicate that JCI will report an adjusted EPS of $3.49, representing a decline of 5.9% from $3.71 in fiscal 2023. Nevertheless, analysts anticipate a recovery in fiscal 2026, with adjusted EPS expected to rise 18.6% year-over-year to $4.14.
Recent Performance Highlights JCI’s Strong Year
In a notable performance, JCI shares have surged 36.9% over the past year, outpacing the S&P 500 Index, which gained 21.8%, and the Industrial Select Sector SPDR Fund (XLI), which increased by 16.9% during the same period.
Q4 Earnings Report Shows Mixed Results
On November 6, JCI released its Q4 earnings, reporting an adjusted EPS of $1.28, which surpassed analysts’ expectations of $1.25. Revenue increased by 6.7% year-over-year to $6.25 billion, yet it did not meet the consensus estimate of $7.26 billion. Regardless of this shortfall, the positive earnings news resulted in an 8.8% rise in stock price.
Analyst Sentiment Remains Optimistic
Overall, the sentiment surrounding JCI stock is moderately bullish, with a “Moderate Buy” rating from analysts. Out of 19 analysts, 11 recommend a “Strong Buy,” while eight suggest a “Hold” rating. The average price target of $88.84 implies a potential upside of 12.9% from current levels.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information provided is for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed in this article are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
