Earnings Preview: Johnson Controls

Johnson Controls (JCI) is scheduled to report Q4 results before market open Thursday, October 23, with a conference call scheduled for 11:00am ET.

Guidance

Analysts are looking for the company to post a Q3 profit of 73c on sales of $9.48B. The consensus range is 71c to 73c for EPS with a range of $9.17B to $9.81B for revenue, according to First Call. In Q3 the company reported EPS 73c vs. consensus of 73c and Q3 revenue $9.86B verses consensus of $9.84B. On October 14, the company lowered its FY09 EPS view to $1.95 to $2.10 and revenue of $37B.

Possible revenue drivers include a growing facilities management division and expanding overseas business while possible hindrances to earnings include a contraction of business in the U.S. resulting from a slowing economy and higher raw materials costs.

Analyst Views

On October 16, Goldman Sachs downgraded the company to Neutral from Buy citing potential weakness in its building efficiency and automotive units.