Published on 29 Apr 2024 on Zacks via Yahoo Finance
What to Note Ahead of Johnson Controls' (JCI) Q2 Earnings?
Johnson Controls International plc JCI is scheduled to release second-quarter fiscal 2024 (ended Mar 2024) financial numbers on May 01, before market open.The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing in one. The average earnings surprise was 0.3%. In the last reported quarter, its earnings of 51 cents per share beat the consensus estimate of 50 cents by 2%.The consensus estimate for the company’s second-quarter fiscal 2024 revenues is pegged at $6.8 billion, suggesting an increase of 1% from the year-ago quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at 75 cents per share, in line with the year-ago quarter’s reported number.
Key Factors and Estimates for Q2
The Building Solutions North America segment is expected to have benefited on the back of solid momentum in the applied heating, ventilation and air conditioning (HVAC) & controls businesses. We expect the segment’s revenues to be $2.6 billion, implying an increase of 2.4% from the year-ago reported figure.The Building Solutions Europe, the Middle East, Africa/Latin America segment is expected to have benefited from continued momentum in applied HVAC & controls, fire & security and service businesses. Our estimate for the segment’s revenues is pegged at $1 billion, suggesting a 0.2% increase from the year-ago reported figure.Investments in digital offerings, like the OpenBlue digital platform, which plays an integral part in meeting customer needs, are expected to have driven the company’s revenues in the fiscal second quarter.However, Johnson Controls is expected to have put up a weak show in the upcoming earnings result due to weakness across its Global Products and Building Solutions Asia Pacific segments. Declining global residential sales are expected to have hurt the Global Products segment. Also, challenging end-market conditions in China are likely to have marred the performance of the Building Solutions Asia Pacific segment’s Install business in the to-be-reported quarter.The escalating cost of sales poses a threat to Johnson Controls’ bottom line. High commodity prices are expected to have pushed up the cost of sales, which is likely to have been reflected in its margins in the fiscal second quarter. We expect the company’s cost of sales to escalate 2.5% year over year in the to-be-reported quarter.