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Ireland-based Johnson Controls International plc (JCI) engineers, manufactures, commissions, and retrofits building products and systems. With a market cap of $51.9 billion, Johnson Controls operations span the U.S., Europe, the Indo-Pacific, and internationally. The industrial sector giant is expected to release its Q4 earnings before the market opens on Wednesday, Nov. 6.
Ahead of the event, analysts expect Johnson Controls to report a profit of $1.25 per share, up 19.1% from $1.05 per share reported in the year-ago quarter. The company has surpassed Wall Street’s earnings estimates thrice over the past four quarters while missing on another occasion. Its adjusted EPS for the last reported quarter grew 10.7% year-over-year to $1.14, exceeding the consensus estimates by 5.6%.
For fiscal 2024, analysts expect JCI to report an adjusted EPS of $3.68, up 5.1% from $3.50 in fiscal 2023. However, in fiscal 2025, its adjusted EPS is expected to decline 3.5% year-over-year to $3.55.
JCI stock prices surged 34.9% in 2024, outperforming the S&P 500 Index’s ($SPX) 22.1% gains and the Industrial Select Sector SPDR Fund’s (XLI) 19.1% returns on a YTD basis.
Shares of Johnson Controls rose 3.6% after the release of its Q3 earnings on Jul. 31. Although the company underperformed Wall Street’s topline expectations, it surpassed analysts’ earnings estimates. Johnson Controls reported a 1.4% year-over-year growth in net sales to $7.2 billion, falling short of Wall Street’s expectations by a small margin, due to the lackluster products and systems sales. The company reported a massive 61.3% surge in income before taxes, totaling $1.3 billion. Although the company observed a drop in net income, it was primarily due to the tax benefit incurred in the year-ago quarter.
Johnson Controls gave a strong year-over-year organic sales growth guidance of approximately 7% and adjusted EPS guidance of $1.23 to $1.26 for Q4, bolstering investor confidence. Following the release of JCI’s Q3 results, several analysts raised their price targets for the stock and upgraded their ratings, increasing its mean price target.
The consensus opinion on JCI stock is moderately bullish, with an overall “Moderate Buy” rating. Of the 19 analysts covering the stock, 10 recommend “Strong Buy,” and nine advise a “Hold” rating. The mean price target of $80.89 suggests a potential upside of 4.1% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
