## Johnson Controls Intl (JCI) Earnings Preview: What to Watch for on November 6th
Johnson Controls Intl (JCI), a leading provider of building technologies and solutions, is gearing up to unveil its quarterly earnings on Wednesday, November 6th. As investors eagerly await the release, here’s a deep dive into key factors to consider and what to watch for.
Analyst Expectations and Historical Performance:
Analysts are forecasting an earnings per share (EPS) of $1.20 for the quarter. While beating this estimate would be a positive sign, investors will be particularly attentive to the company’s guidance, or its outlook for future performance. This is because historical trends suggest that guidance, rather than just an earnings beat or miss, often has a greater impact on stock price movements.
In the previous earnings release, Johnson Controls Intl exceeded EPS expectations by $0.05, yet the stock price experienced a 1.69% decline the following trading session. This highlights the significance of guidance in shaping market sentiment.
Here’s a look at the company’s recent earnings performance and the corresponding price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|———–|—————|————-|—————–|
| Q3 2024 | 1.09 | 1.14 | -2.0% |
| Q2 2024 | 0.75 | 0.78 | 0.0% |
| Q1 2024 | 0.51 | 0.51 | -3.0% |
| Q4 2023 | 1.09 | 1.05 | 0.0% |
Market Sentiment and Analyst Opinions:
To gauge market expectations and investor sentiment, understanding analyst opinions is crucial. Currently, 8 analysts have provided ratings for Johnson Controls Intl, resulting in a consensus rating of Neutral. The average one-year price target stands at $79.75, representing a potential upside of 7.44%.
Peer Analysis and Comparative Insights:
Comparing Johnson Controls Intl’s performance to its industry peers offers valuable insights into its competitive positioning. Here’s a breakdown of analyst ratings and average one-year price targets for three key players in the industry:
*
Carrier Global:
Neutral rating, average price target of $82.06 (10.55% upside)*
Lennox Intl:
Neutral rating, average price target of $630.57 (749.48% upside)*
Builders FirstSource:
Buy rating, average price target of $206.47 (178.15% upside)Key Takeaways from Peer Analysis:
* Johnson Controls Intl sits in the middle regarding consensus rating among its peers.
* While it ranks bottom for revenue growth, it holds a middle position for gross profit.
* However, its return on equity falls at the bottom, indicating challenges in efficiently utilizing equity capital.
Johnson Controls Intl: A Closer Look:
Johnson Controls is a diversified company with a broad range of products and services. Its portfolio includes HVAC systems, building management systems, industrial refrigeration units, and fire and security solutions. Commercial HVAC accounts for over 45% of its sales, followed by fire and security at approximately 40%, with the remaining 15% attributed to residential HVAC, industrial refrigeration, and other solutions.
In fiscal 2023, Johnson Controls generated nearly $27 billion in revenue, demonstrating its scale and market presence.
Financial Insights:
*
Market Capitalization:
Above industry average, indicating significant scale and market confidence.*
Revenue Growth:
Positive performance over the past three months with a 1.37% growth rate as of June 30, 2024. However, this growth rate lags behind the industry average.*
Net Margin:
Exceptional net margin exceeding industry standards, demonstrating strong profitability and effective cost management.*
Return on Equity (ROE):
Below industry average, suggesting potential difficulties in utilizing equity capital effectively.*
Return on Assets (ROA):
Below industry average, indicating potential challenges in efficiently utilizing assets.*
Debt Management:
Debt-to-equity ratio below industry norms, indicating a healthy financial structure.Stay Updated:
To stay informed on all earnings releases for Johnson Controls Intl, visit the dedicated earnings calendar on our website.
This comprehensive analysis provides investors with a detailed perspective on Johnson Controls Intl’s upcoming earnings report. As the company prepares to unveil its financial results, these insights offer valuable context and potential factors to consider when evaluating its performance and future prospects.
