Johnson Controls International plc ( JCI Quick Quote JCI - Free Report) is slated to release fourth-quarter fiscal 2021 results on Nov 5, before the opening bell. The Zacks Consensus Estimate for the company’s quarterly earnings is pegged at 87 cents per share on revenues of $6.42 billion. The company’s last quarter earnings came in at par with estimates on the higher-than-expected contributions from the Building Solutions North America and Building Solutions Europe, Middle East, Africa/Latin America segments. The company topped earnings estimates in three of the preceding four quarters and was at par in the other, the average beat being 4.43%. This is depicted in the graph below: Which Way are the Estimates Headed?
The Zacks Consensus Estimate for Johnson Controls’ fiscal fourth-quarter earnings per share (EPS) moved 2 cents south to 87 cents over the past 60 days. Nonetheless, this compares favorably with the year-ago quarter’s reported earnings of 76 cents. Also, the Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 7.8%.
Our proven model predicts an earnings beat for Johnson Controls this time around. The combination of a positive
Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This has been elaborated below. Earnings ESP: Johnson Controls has an Earnings ESP of +0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks Rank: Johnson Controls, closest peer of which is Resideo Technologies (, currently carries a Zacks Rank of 2. You can see REZI Quick Quote REZI - Free Report) . the complete list of today’s Zacks #1 Rank stocks here Factors Setting the Tone
With the sustained recovery of the economy, the global HVAC (heating, ventilation, and air conditioning) market, along with the security and safety business, is witnessing exponential growth. Also, with commercial buildings reopening and amid the rising trends of decarbonization, Johnson Controls expects surge in demand for its healthy and smart buildings. Thus, the company’s quarterly results will likely reflect the favorable impact of soaring sales on the HVAC and Building Management Solutions (BMS) platforms across all of the company’s segments.
Markedly, the Zacks Consensus Estimate for sales from Building Solutions North America for the period in discussion is pegged at $2,385 million, suggesting a rise from the $2,243 million reported in the prior-year quarter. Further, the consensus mark for the segment’s EBIT is pinned at $371 million, calling for an improvement from the $345 million seen in the last-year quarter. Also, the consensus mark for quarterly sales from Building Solutions Asia Pacific is pegged at $730 million, calling for a rise from the $661 million reported in the prior-year period. The same for the segmental EBIT is $109 million, indicating growth from the year-ago period’s $97 million.
Further, the consensus mark for quarterly sales from
Building Solutions EMEA/LA is pegged at $972 million, calling for a surge from the $906 million witnessed in the prior-year quarter. The same for the EBIT from the segment is $112 million, indicating an improvement from the $103 million reported in the year-earlier period. In addition, the consensus mark for quarterly sales from Global Products is pegged at $2,416 million, indicating an increase from the $2,144 million recorded in the prior-year quarter. The same for the segment’s EBIT is $437 million, suggesting a jump from the $381 million seen in the year-ago period. During the to-be-reported quarter, Johnson Controls launched OpenBlue Net Zero Buildings as a Service, which includes a full portfolio of sustainability products tailored for various segments, through which the company will provide a one-stop solution for companies looking to achieve net zero carbon and renewable energy goals. In August, Johnson Controls also partnered with Apollo Global Management to provide sustainability and energy efficiency services aimed at addressing decarbonization and operating cost goals for customer buildings. Apart from this, Johnson Controls’ partnership with Phylagen, which took place in September, aims at developing cutting-edge technology for advancing the future of healthy buildings. Apart from this, in September, Johnson Controls joined forces with Atos to accelerate its customer’s journey to Net Zero by providing a unique set of end-to-end advisory services, digital and other key decarbonization capabilities. These series of events aimed at enhancing Johnson Controls’ product offerings are likely to have been beneficial for the company’s performance during the September-end quarter. Other Stocks to Consider
Along with Johnson Controls, here are a few other stocks in the same sector lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks as well:
MRC Global ( MRC Quick Quote MRC - Free Report) has an Earnings ESP of +2.94% and carries a Zacks Rank #3, at present. The company will announce quarterly results on Nov 8. Tetra Tech ( TTEK Quick Quote TTEK - Free Report) has an Earnings ESP of +0.5% and currently carries a Zacks Rank of 2. The company is slated to release earnings figures on Nov 17.