We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Johnson Controls (JCI) Q3 Earnings: What's in the Cards?
Read MoreHide Full Article
Johnson Controls International plc (JCI - Free Report) is set to report third-quarter fiscal 2018 results before the opening bell on Jul 31.
The company beat estimates in two of the trailing four quarters, the average positive surprise being 1.95%.
Long-term earnings per share growth (three-five years) for the company is pegged at 11%
In the last six months, Johnson Controls’ shares have lost 14.3%, compare with the 9.6% decline of the industry it belongs to.
Let’s see, how things have shaped up for the upcoming announcement.
Factors Influencing This Quarter
For fiscal 2018, the company has provided outlook for adjusted EPS before special items within the range of $2.75-$2.85, reflecting an increase of 6-10% year over year.
Further, during the second quarter, Johnson Controls raised its share repurchase authorization of 1.3 million. Additionally, the company repurchased 4.9 million shares which is in addition to the previously announced share buyback of $100 million shares. The company’s board has approved a quarterly cash dividend of 26 cents per share. This dividend was paid on Jul 13, 2018, to shareholders of record as of Jun 25, 2018.
However, divesting its multiple businesses is adversely impacting the company’s profits and revenues. In October 2017, the company closed the divestiture of Scott Safety to 3M. Prior to this, in March 2017, the company completed the divestiture of its ADT South Africa business. Thus, these high separation costs associated with the divestitures are straining its revenues and profits.
Johnson Controls is also exposed to volatility in commodity prices. Examples of highly volatile commodities used in the Building Efficiency business are steel, aluminum, copper and fuel while lead is used in the Power Solutions business.
For the soon-to-be-released results, the Zacks Consensus Estimate for total revenues for the Building Technologies & Solutions segment is pegged at $6.1 billion, up from the previous quarter’s $5.6 billion.
Similarly, the Zacks Consensus Estimate for total revenues at the company’s Power Solutions segment stands at $1.7 billion, down from the previous quarter’s $1.8 billion.
Johnson Controls International plc Price and EPS Surprise
Our proven model does not conclusively show that Johnson Controls is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Earnings ESP: Johnson Controls has an Earnings ESP is -0.42%. The Zacks Consensus Estimate for third-quarter fiscal earnings is pegged at 80 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Johnson Controls carries a Zacks Rank #4 (Sell). Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider Here are a few auto stocks worth considering from the same space comprising the right combination of elements to come up with an earnings beat this time around:
Fox Factory Holding Corp. (FOXF - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank #2. The company’s second-quarter 2018 financial results are scheduled for release on Aug 1.
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #3. The company’s second-quarter 2018 financial results are expected to be released on Aug 3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Johnson Controls (JCI) Q3 Earnings: What's in the Cards?
Johnson Controls International plc (JCI - Free Report) is set to report third-quarter fiscal 2018 results before the opening bell on Jul 31.
The company beat estimates in two of the trailing four quarters, the average positive surprise being 1.95%.
Long-term earnings per share growth (three-five years) for the company is pegged at 11%
In the last six months, Johnson Controls’ shares have lost 14.3%, compare with the 9.6% decline of the industry it belongs to.
Let’s see, how things have shaped up for the upcoming announcement.
Factors Influencing This Quarter
For fiscal 2018, the company has provided outlook for adjusted EPS before special items within the range of $2.75-$2.85, reflecting an increase of 6-10% year over year.
Further, during the second quarter, Johnson Controls raised its share repurchase authorization of 1.3 million. Additionally, the company repurchased 4.9 million shares which is in addition to the previously announced share buyback of $100 million shares. The company’s board has approved a quarterly cash dividend of 26 cents per share. This dividend was paid on Jul 13, 2018, to shareholders of record as of Jun 25, 2018.
However, divesting its multiple businesses is adversely impacting the company’s profits and revenues. In October 2017, the company closed the divestiture of Scott Safety to 3M. Prior to this, in March 2017, the company completed the divestiture of its ADT South Africa business. Thus, these high separation costs associated with the divestitures are straining its revenues and profits.
Johnson Controls is also exposed to volatility in commodity prices. Examples of highly volatile commodities used in the Building Efficiency business are steel, aluminum, copper and fuel while lead is used in the Power Solutions business.
For the soon-to-be-released results, the Zacks Consensus Estimate for total revenues for the Building Technologies & Solutions segment is pegged at $6.1 billion, up from the previous quarter’s $5.6 billion.
Similarly, the Zacks Consensus Estimate for total revenues at the company’s Power Solutions segment stands at $1.7 billion, down from the previous quarter’s $1.8 billion.
Johnson Controls International plc Price and EPS Surprise
Johnson Controls International plc Price and EPS Surprise | Johnson Controls International plc Quote
Earnings Whispers
Our proven model does not conclusively show that Johnson Controls is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Earnings ESP: Johnson Controls has an Earnings ESP is -0.42%. The Zacks Consensus Estimate for third-quarter fiscal earnings is pegged at 80 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Johnson Controls carries a Zacks Rank #4 (Sell). Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are a few auto stocks worth considering from the same space comprising the right combination of elements to come up with an earnings beat this time around:
Visteon Corp. (VC - Free Report) has an Earnings ESP of +6.55% and a Zacks Rank #3. The company’s second-quarter 2018 financial results are scheduled to be released on Jul 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory Holding Corp. (FOXF - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank #2. The company’s second-quarter 2018 financial results are scheduled for release on Aug 1.
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #3. The company’s second-quarter 2018 financial results are expected to be released on Aug 3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>