Earnings Preview: Johnson Controls

Johnson Controls (JCI) is expected to report Q4 earnings Tuesday, October 27 before market open, with a conference call scheduled for 11am ET.

Guidance

Analysts are looking for EPS of 50c on revenue of $7.79B. The consensus range is 39c-54c for EPS, and $7.37B-$8.01B for revenue, according to First Call. On October 13, Johnson Controls gave Q4 guidance of 40c-42c versus the consensus of 38c. Possible positive drivers for Q4 include an increase in the company's mid-term automotive margins guidance to 6.7% from 5%. An increase in building efficiency sales spurred by the uptick in U.S residential construction spending could also help the company's Q4 results.

Analyst Views

On October 13, ThinkEquity said that Johnson Controls is poised to perform well. After Johnson Controls preannounced higher than expected Q4 results, ThinkEquity believes that the company is well-positioned to benefit from trends towards building efficiencies and the electrification of transportation. The firm reiterates a Buy rating on the stock.