Johnson Controls Set to Report Q4 Earnings: Is a Beat in Store?

Johnson Controls International plc JCI is scheduled to release fourth-quarter fiscal 2024 (ended September 2024) financial numbers on Nov. 6, before market open.The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and missed in one. The average earnings surprise was 2%. In the last reported quarter, its earnings of $1.14 per share beat the consensus estimate of $1.08 by 6%.The consensus estimate for revenues is pegged at $7.3 billion, indicating an increase of 5.2% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $1.25 per share, indicating an increase of 19.1% from the year-ago quarter’s figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Key Factors and Estimates to Note Ahead of JCI’s Earnings ReleaseThe Building Solutions North America segment is expected to have benefited from solid demand for heating, ventilation and air conditioning (HVAC) platform in data centers & strength in controls businesses. We expect the segment’s revenues to be $2.9 billion, implying an increase of 5.2% from the year-ago figure.The Building Solutions Europe, the Middle East, Africa/Latin America segment is expected to have benefited from the increase in demand for HVAC platforms across Latin America and Middle East regions and strength in systems and service businesses. Our estimate for the segment’s revenues is pegged at $1.1 billion, indicating a 6.3% increase from the year-ago figure.Growth in commercial and residential HVAC businesses is likely to have aided the company’s Global Products segment. Our estimate for the segment’s revenues is pegged at $2.6 billion, indicating an 8.5% increase from the year-ago figure.Investments in digital offerings, like the OpenBlue digital platform that plays an integral part in meeting customer needs, are expected to have driven the company’s revenues.We expect the company’s total revenues to be $7.2 billion for the fiscal fourth quarter, indicating an increase of 3.7% year over year. Adjusted earnings are expected to be $1.23 per share, indicating a 17.6% increase from the year-ago quarter’s number.However, Johnson Controls is expected to have put up a weak show due to weakness across its Building Solutions Asia Pacific segment. Continued weakness in system sales in China is likely to have marred the performance of the segment. We expect revenues from the segment to decrease 22.5% year over year to $540.2 million.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 impacted in its margins in the fiscal fourth quarter. JCI has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.Johnson Controls International plc Price and EPS Surprise Johnson Controls International plc price-eps-surprise | Johnson Controls International plc QuoteEarnings WhispersOur proven model predicts an earnings beat for JCI 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, which is the case here, as elaborated below. Earnings ESP: JCI has an Earnings ESP of +1.33% as the Most Accurate Estimate is pegged at $1.26 per share, which is higher than the Zacks Consensus Estimate of $1.25. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: JCI currently carries a Zacks Rank of 3.Performance of Other Industrial CompaniesAvery Dennison Corporation AVY delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.Total revenues grew 4.1% year over year to $2.18 billion and missed the consensus estimate of $2.2 billion.A. O. Smith Corporation’s AOS third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.Another Stock to ConsiderHere is a company, which according to our model, also has the right combination of elements to beat on earnings this reporting cycle.Tenaris S.A. TS has an Earnings ESP of +10.22% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is scheduled to release third-quarter 2024 results on Nov. 6. Tenaris’ earnings surpassed the Zacks Consensus Estimate in two of the preceding four quarters and missed the mark in the other two, the average surprise being 11.6%.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson Controls International plc (JCI): Free Stock Analysis Report Avery Dennison Corporation (AVY): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report Tenaris S.A. 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