In its upcoming report, Johnson Controls (JCI) is predicted by Wall Street analysts to post quarterly earnings of $0.84 per share, reflecting an increase of 31.3% compared to the same period last year. Revenues are forecasted to be $5.66 billion, representing a year-over-year increase of 4.3%.The current level reflects an upward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initi ...

Earnings Results - Johnson Controls International plc is set to release its fourth-quarter earnings results on November 5, with analysts expecting earnings of $1.20 per share, a decrease from $1.28 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $6.33 billion, down from $7.39 billion a year earlier [1] Recent Developments - On September 24, Johnson Controls announced the appointment of Todd Grabowski as vice president and president for the Americas [2] - The company's shares fell by 1.9%, closing at $111.04 on Tuesday [2] Analyst Ratings - JP Morgan analyst Stephen Tusa maintained an Overweight rating and raised the price target from $105 to $125 [4] - Citigroup analyst Andrew Kaplowitz maintained a Neutral rating and increased the price target from $112 to $119 [4] - Morgan Stanley analyst Chris Snyder maintained an Overweight rating and raised the price target from $115 to $125 [4] - RBC Capital analyst Deane Dray maintained a Sector Perform rating and increased the price target from $112 to $114 [4] - Barclays analyst Julian Mitchell maintained an Equal-Weight rating and raised the price target from $100 to $101 [4]

Core Insights - Johnson Controls International plc is set to release its fourth-quarter earnings results on November 5, with expected earnings of $1.20 per share, a decrease from $1.28 per share in the same quarter last year [1] - The anticipated quarterly revenue for Johnson Controls is $6.33 billion, down from $7.39 billion a year earlier [1] Company Developments - On September 24, Johnson Controls appointed Todd Grabowski as vice president and president for the Americas [2] - The company's shares fell by 1.9%, closing at $111.04 on Tuesday [2] Analyst Ratings - JP Morgan analyst Stephen Tusa maintained an Overweight rating and raised the price target from $105 to $125 [4] - Citigroup analyst Andrew Kaplowitz maintained a Neutral rating and increased the price target from $112 to $119 [4] - Morgan Stanley analyst Chris Snyder maintained an Overweight rating and raised the price target from $115 to $125 [4] - RBC Capital analyst Deane Dray maintained a Sector Perform rating and increased the price target from $112 to $114 [4] - Barclays analyst Julian Mitchell maintained an Equal-Weight rating and raised the price target from $100 to $101 [4]

Group 1: Western Union - Western Union announced the acquisition of Intermex for approximately $500 million to strengthen its position in high-growth Latin American markets [1] - Western Union shares fell 1.7% to settle at $8.20 [7] Group 2: Johnson Controls - Johnson Controls raised its dividend from 37 cents to 40 cents per share [2] - Johnson Controls shares gained 1% to close at $108.48 [7] Group 3: MNTN, Inc. - MNTN reported a second-quarter loss of 65 cents per share, an improvement from a loss of 69 cents per share a year ago, with quarterly sales of $68.460 million, exceeding analyst estimates of $64.483 million [2] - MNTN shares rose 0.1% to settle at $20.08 [7] Group 4: Nordic American Tankers - Nordic American Tankers posted weaker-than-expected quarterly sales, leading to a negative outlook [3] - Nordic American shares fell 0.3% to $3.30 [7] Group 5: Occidental Petroleum - UBS analyst maintained Occidental Petroleum with a Neutral rating and raised the price target from $45 to $46 [3] - Occidental Petroleum shares rose 0.4% to close at $47.36 [7] Group 6: Kenvue Inc. - Kenvue was maintained with a Neutral rating by Citigroup, with the price target lowered from $22 to $20 [4] - Kenvue shares fell 1.3% to settle at $18.10 [7]

Financial Performance - Organic sales grew by 6%[10, 15], driven by broad-based strength across the company - Adjusted Segment EBITA margin expanded by 20 basis points to 176%[10] - Adjusted EPS increased by 11% year-over-year, reaching $105[10, 17] - The company reported strong free cash flow[10] Orders and Backlog - Orders grew by 2%[10], with growth in the Americas offsetting softness in China - Backlog increased by 11% to $146 billion[10] - Service orders increased by 5% and systems orders increased by 1%[23] - Service backlog grew by 8% and systems backlog grew by 11%[24] Segment Results - Americas sales grew by 5%[27] and backlog increased by 10% to $103 billion[27] - EMEA sales grew by 2%[27] and backlog increased by 9% to $26 billion[27] - APAC sales grew by 7%[27] and backlog increased by 14% to $17 billion[27] Guidance - The company updated its full-year adjusted EPS guidance to a range of $365 to $368[10] - The company expects adjusted free cash flow conversion to be greater than 100%[10] - Q4 2025 adjusted segment EBITA margin is expected to be approximately 186%[29]

Summary of Johnson Controls Conference Call Company Overview - **Company**: Johnson Controls - **Event**: Oppenheimer's 20th Annual Industrial Growth Conference Key Points Leadership Transition and Strategy - New CEO Joaquin has been proactive in his first two months, visiting eight countries and engaging with customers and factory operations [3][4] - Focus on lean initiatives and value creation opportunities, emphasizing a long-term journey rather than immediate results [4][6] - The company is redefining its strategy and portfolio, identifying areas for growth and potential divestitures [5][6] Operational Changes - Revised reporting structure aligns with industry peers, aiming for cost reduction and improved accountability [8][10] - The new structure aims to eliminate redundancy and improve customer focus, transitioning from a dual operating model to a unified approach [11][12] - Anticipated reduction in corporate costs, with guidance for Q3 at approximately $80 million, down from $130 million in Q2 [15][16] Financial Performance and Growth Targets - Long-term goal of double-digit earnings growth, leveraging existing cost structures and improving operational efficiency [21][25] - Gross margins are strong, but SG&A costs have historically been higher than competitors, indicating room for improvement [22][20] - Lean management initiatives expected to enhance gross margins and operational performance over the next few years [24][25] Service Revenue and Resilience - Service revenue is characterized as true recurring income, with multiyear contracts linked to sold systems [29][30] - Historical resilience during economic downturns, with a potential increase in service demand as maintenance is deferred [30][31] OpenBlue Technology Platform - OpenBlue is a differentiated offering with significant growth potential, currently under 1% penetration of the installed base [33][40] - The platform provides operational insights and efficiency improvements, with a compelling ROI of up to 55% over three years [32][33] Market Demand and Pipeline - Observed softness in certain verticals, but overall health in core markets remains strong [44][46] - Data centers and complex manufacturing are experiencing robust growth, while commercial real estate shows mixed signals [50][51] - Tariff impacts expected to affect revenues by about 2%, but the company has strategies in place to mitigate these effects [58][60] Cash Flow and Capital Structure - Achieved 100% free cash flow conversion, driven by improved supply chain and procurement practices [64][65] - Lean management expected to enhance inventory management and reduce capital intensity over time [66][67] Conclusion - Johnson Controls is undergoing significant transformation under new leadership, focusing on operational efficiency, customer-centric strategies, and leveraging technology for growth. The company is well-positioned to navigate market challenges while pursuing long-term financial goals.

Core Viewpoint - Analysts expect Johnson Controls (JCI) to report quarterly earnings of $0.77 per share, reflecting a year-over-year decline of 1.3%, with revenues projected at $5.64 billion, down 15.8% from the previous year [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 1.2%, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Key Metrics Forecast - Analysts predict 'Net Sales- Global Products' to be $1.25 billion, indicating a year-over-year decline of 47.9% [5] - 'Net Sales- Building Solutions North America' is expected to reach $2.84 billion, reflecting a year-over-year increase of 3.6% [5] - 'Net Sales- Building Solutions EMEA/LA' is forecasted at $1.08 billion, suggesting a year-over-year change of 1.8% [5] - 'Net Sales- Building Solutions Asia Pacific' is estimated to be $514.05 million, indicating a year-over-year increase of 4.7% [6] Adjusted EBITA Estimates - The consensus for 'Total Segment Adjusted EBITA- Global Products' is $348.77 million, down from $455 million reported in the same quarter last year [6] - 'Total Segment Adjusted EBITA- Building Solutions North America' is forecasted at $393.45 million, compared to $373 million from the previous year [7] - 'Total Segment Adjusted EBITA- Building Solutions Asia Pacific' is estimated at $55.77 million, slightly up from $54 million reported last year [7] - The average prediction for 'Total Segment Adjusted EBITA- Building Solutions EMEA/LA' is $102.53 million, compared to $89 million from the previous year [8] Stock Performance - Over the past month, Johnson Controls shares have increased by 13%, while the Zacks S&P 500 composite has decreased by 0.5% [8] - Based on its Zacks Rank 3 (Hold), JCI is expected to perform in line with the overall market in the upcoming period [8]