Johnson Controls Gears Up to Report Q2 Earnings: What to Expect?

Core Viewpoint - Johnson Controls International plc (JCI) is set to release its second-quarter fiscal 2025 financial results on May 7, with expectations of a mixed performance in revenues and earnings compared to the previous year [1][5]. Revenue Estimates - The consensus estimate for JCI's revenues is $5.64 billion, reflecting a decrease of 15.8% from the same quarter last year [2]. - The Building Solutions North America segment is anticipated to benefit from strong demand for HVAC platforms in data centers [2]. - The Building Solutions Europe, the Middle East, Africa/Latin America segment is expected to see revenues of $1.1 billion, indicating a 0.5% increase year-over-year [3]. - The Building Solutions Asia Pacific segment is projected to experience a revenue decline of 14.3% year-over-year to $434.8 million [4]. - The Global Products segment is expected to see an 8.3% increase in revenues year-over-year to $531.5 million [4]. Earnings Estimates - The consensus estimate for adjusted earnings is set at 77 cents per share, a decrease of 1.3% from the previous year [2]. - JCI has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 5.1% [1]. Key Factors Influencing Performance - Investments in digital offerings, such as the OpenBlue platform, are expected to drive revenue growth [5]. - However, rising selling, general and administrative (SG&A) expenses, particularly due to higher insurance recovery costs, may negatively impact margins [6]. - The company faces foreign currency headwinds due to its significant international operations, which could further affect profitability [6]. Earnings Prediction Model - JCI currently has an Earnings ESP of 0.00%, indicating no clear prediction for an earnings beat this time [8]. - The company holds a Zacks Rank of 4 (Sell), which suggests a less favorable outlook compared to higher-ranked peers [8].