Johnson Controls Set to Report Q4 Earnings Amid Strong Stock Performance
Ireland-based Johnson Controls International plc (JCI) is a leader in engineering, manufacturing, and retrofitting systems for buildings. With a market capitalization of $51.9 billion, its operations extend across the U.S., Europe, and the Indo-Pacific regions. Investors are keenly awaiting the company’s Q4 earnings report, which is scheduled for release before the market opens on Wednesday, Nov. 6.
Positive Earnings Forecast and Trends
Analysts predict that Johnson Controls will report earnings of $1.25 per share, marking a 19.1% increase from the $1.05 per share reported in the same quarter last year. Over the last four quarters, JCI has exceeded Wall Street’s earnings estimates three times, although it fell short on one occasion. In its last reported quarter, the company achieved an adjusted EPS of $1.14, reflecting a year-over-year growth of 10.7% and surpassing consensus estimates by 5.6%.
Future Earnings Expectations
Looking ahead to fiscal 2024, analysts forecast an adjusted EPS of $3.68, which is a 5.1% increase from the $3.50 reported in fiscal 2023. However, for fiscal 2025, projections indicate a decline of 3.5%, bringing the adjusted EPS to an expected $3.55.
Stock Performance and Market Comparison
In 2024, JCI stock prices increased by 34.9%, significantly outperforming the S&P 500 Index, which saw gains of 22.1%, and the Industrial Select Sector SPDR Fund’s returns of 19.1% year-to-date.
Q3 Earnings Insights and Analyst Reactions
After the release of its Q3 earnings report on July 31, JCI shares rose by 3.6%. Although the company’s net sales of $7.2 billion reflected a modest 1.4% increase year-over-year, they fell slightly short of Wall Street expectations due to weak sales in some products. On a positive note, income before taxes jumped by 61.3% to $1.3 billion. The decline in net income was primarily linked to a tax benefit realized in the previous year.
To boost investor confidence, Johnson Controls provided guidance of about 7% organic sales growth and an adjusted EPS range of $1.23 to $1.26 for Q4. Following this announcement, several analysts adjusted their price targets upward and upgraded their ratings on JCI’s stock.
Analyst Ratings and Market Sentiment
Overall sentiment on JCI stock is moderately bullish. Of the 19 analysts monitoring the stock, 10 recommend a “Strong Buy,” while nine suggest a “Hold.” The average price target is set at $80.89, indicating a potential upside of approximately 4.1% from current trading levels.
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On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is intended solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
