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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 $47.3 billion, Johnson Controls operates globally. It is expected to announce its Q3 earnings on Wednesday, July 31.
Ahead of the event, analysts expect Johnson Controls to report a profit of $1.08 per share, up 4.9% from $1.03 per share reported in the year-ago quarter. The company has surpassed or met Wall Street’s EPS projections in three of the past four quarters while missing on one other occasion. Its EPS for the last reported quarter grew by 4% year over year to $0.78, also exceeding the consensus estimates by 4%.
Looking ahead to fiscal 2024, analysts expect Johnson Controls to report an EPS of $3.59, up 2.6% from $3.50 in fiscal 2023. Over the longer term, its fiscal 2025 EPS is projected to grow 12.8% annually to $4.05.
JCI stock is up 19.1% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 16.9% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 10.9% returns over the same time frame.
JCI stock fell 7.1% on May 1 after its fiscal Q2 earnings were unveiled. Although revenues rose marginally from the prior-year quarter, it reported a net loss of $234 million compared to a net income of $174 in the year-ago quarter, primarily due to increased material cost inflation, component shortages, and supply chain disruptions. Additionally, the slowdown of the real estate sector in key markets like China has further dented the company's financial performance.
For 11 consecutive years, it has kept up a streak of paying dividends and repurchased shares worth $474 million in Q2. This shareholder dedication is a key reason why JCI stock has been outpacing the broader market this year.
The consensus opinion on Johnson Controls stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 19 analysts covering the stock, eight recommend a “Strong Buy,” 10 suggest a “Hold,” and one advises a “Strong Sell” rating.
Although the average analyst target price for JCI stock is $70.22, indicating a marginal upside from current price levels, the Street-high target price of $82 implies the stock could rally as much as 16.8%.
On the date of publication, Sristi Jayaswal 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.
