Earnings Preview: Johnson Controls

Johnson Controls (JCI) is scheduled to report Q1 results on Wednesday morning with a conference call scheduled for 11:00am ET.

Guidance

Analysts are looking for the company to post a Q1 profit of 47c on sales of $9.37B. The consensus range is 44c to 50c for EPS with a range of $9.15B to $9.50B for revenue, according to First Call. Possible revenue drivers include more 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 analysis

In late March, Baird upgraded the auto and truck suppliers sector citing valuations, lowered expectations, industry dynamics and a potential bottom in economic indicators.

On March 13, Gabelli upgraded the shares to a Buy from a Hold on valuation, as they believe the recent weakness due to economic concerns have presented a buying opportunity.

However, on April 11, JPMorgan downgraded Johnson Controls citing the slowdown in commercial construction & HVAC equipment orders, and weakness in N.A. automotive mix and volumes.