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The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 1.1%.
Let’s see how things have shaped up for Johnson Controls this earnings season.
Johnson Controls International plc Price and EPS Surprise
The Building Solutions North America segment is expected to reflect higher revenues on the back of growth in the HVAC & Controls platform. The Zacks Consensus Estimate for Building Solutions North America segment revenues indicates an 8.9% rise from the year-ago reported number. We expect Building Solutions North America segment revenues to increase 5.9% year over year for the fiscal fourth quarter.
The Building Solutions Europe, Middle East, Africa/Latin America segment’s performance is expected to have been aided by solid performance in Fire & Security platforms.
Strong pricing and demand for commercial and residential HVAC and fire detection products are likely to have driven performance of the Global Products’ segment in the fiscal fourth quarter. We expect Global Products revenues to increase 5% for the fiscal fourth quarter.
The acquisition of Tempered Networks (June 2022), which has bolstered Johnson Controls’ OpenBlue technology stack, is expected to have contributed to top-line growth. The Zacks Consensus Estimate for fourth-quarter fiscal 2022 revenues indicates a year-over-year increase of 6.1%. We also expect the same to rise 6.1% year over year.
However, supply-chain issues, including component shortage and labor constraints, are likely to have weighed on JCI’s volumes in the fiscal fourth quarter. Commodity cost inflation is expected to have impacted the company’s margin performance in the to-be-reported quarter. Given JCI’s wide exposure to global markets, foreign currency headwinds are expected to have hurt its performance in the soon-to-be-reported quarter.
What Does the Zacks Model Say?
Our proven model does not conclusively predict 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 chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Johnson Controls has an Earnings ESP of -0.97% as the Most Accurate Estimate is pegged at 98 cents, lower than the Zacks Consensus Estimate of 99 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Johnson Controls currently carries a Zacks Rank #3.
Highlights of Q3 Earnings
Johnson Controls reported third-quarter fiscal 2022 adjusted earnings of 85 cents per share, beating the Zacks Consensus Estimate of 84 cents. The bottom line inched up 3% year over year. Adjusted revenues of $6,614 million missed the Zacks Consensus Estimate of $6,728 million but increased 4% year over year. Results benefited from higher-than-anticipated sales and EBITA in the Building Solutions North America and Global Products segments.
Stocks to Consider
Here are some other companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Sonoco Products (SON - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #3. The company is scheduled to release third-quarter 2022 results on Oct 31.
Sonoco’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 4.1%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6%.
Image: Bigstock
What's in Store for Johnson Controls (JCI) in Q4 Earnings?
Johnson Controls (JCI - Free Report) is scheduled to release fourth-quarter fiscal 2022 results on Nov 3, before market open.
The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 1.1%.
Let’s see how things have shaped up for Johnson Controls this earnings season.
Johnson Controls International plc Price and EPS Surprise
Johnson Controls International plc price-eps-surprise | Johnson Controls International plc Quote
Factors to Note
The Building Solutions North America segment is expected to reflect higher revenues on the back of growth in the HVAC & Controls platform. The Zacks Consensus Estimate for Building Solutions North America segment revenues indicates an 8.9% rise from the year-ago reported number. We expect Building Solutions North America segment revenues to increase 5.9% year over year for the fiscal fourth quarter.
The Building Solutions Europe, Middle East, Africa/Latin America segment’s performance is expected to have been aided by solid performance in Fire & Security platforms.
Strong pricing and demand for commercial and residential HVAC and fire detection products are likely to have driven performance of the Global Products’ segment in the fiscal fourth quarter. We expect Global Products revenues to increase 5% for the fiscal fourth quarter.
The acquisition of Tempered Networks (June 2022), which has bolstered Johnson Controls’ OpenBlue technology stack, is expected to have contributed to top-line growth. The Zacks Consensus Estimate for fourth-quarter fiscal 2022 revenues indicates a year-over-year increase of 6.1%. We also expect the same to rise 6.1% year over year.
However, supply-chain issues, including component shortage and labor constraints, are likely to have weighed on JCI’s volumes in the fiscal fourth quarter. Commodity cost inflation is expected to have impacted the company’s margin performance in the to-be-reported quarter. Given JCI’s wide exposure to global markets, foreign currency headwinds are expected to have hurt its performance in the soon-to-be-reported quarter.
What Does the Zacks Model Say?
Our proven model does not conclusively predict 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 chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Johnson Controls has an Earnings ESP of -0.97% as the Most Accurate Estimate is pegged at 98 cents, lower than the Zacks Consensus Estimate of 99 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Johnson Controls currently carries a Zacks Rank #3.
Highlights of Q3 Earnings
Johnson Controls reported third-quarter fiscal 2022 adjusted earnings of 85 cents per share, beating the Zacks Consensus Estimate of 84 cents. The bottom line inched up 3% year over year. Adjusted revenues of $6,614 million missed the Zacks Consensus Estimate of $6,728 million but increased 4% year over year. Results benefited from higher-than-anticipated sales and EBITA in the Building Solutions North America and Global Products segments.
Stocks to Consider
Here are some other companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Sonoco Products (SON - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #3. The company is scheduled to release third-quarter 2022 results on Oct 31.
Sonoco’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 4.1%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.