Building operations company Johnson Controls (NYSE:JCI) will be reporting earnings tomorrow before the bell. Here’s what to look for.
Johnson Controls missed analysts’ revenue expectations by 13.4% last quarter, reporting revenues of $6.25 billion, up 6.7% year on year. It was a softer quarter for the company, with full-year EPS guidance missing analysts’ expectations.
Is Johnson Controls a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Johnson Controls’s revenue to grow 1.4% year on year to $5.28 billion, in line with the 1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.59 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Johnson Controls’s peers in the commercial building products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Insteel delivered year-on-year revenue growth of 6.6%, beating analysts’ expectations by 10.4%, and Apogee reported flat revenue, topping estimates by 2.8%. Insteel traded up 8.7% following the results while Apogee was down 26.2%.
Read our full analysis of Insteel’s results here and Apogee’s results here.
Investors in the commercial building products segment have had steady hands going into earnings, with share prices flat over the last month. Johnson Controls is down 2.9% during the same time and is heading into earnings with an average analyst price target of $88.53 (compared to the current share price of $77).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
