Earnings To Watch: Johnson Controls (JCI) Reports Q3 Results Tomorrow

Building operations company Johnson Controls (NYSE:JCI) will be reporting earnings tomorrow before the bell. Here’s what investors should know.

Johnson Controls missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $7.23 billion, up 1.4% year on year. It was a satisfactory quarter for the company, with optimistic earnings guidance for the full year.

Is Johnson Controls a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Johnson Controls’s revenue to grow 6% year on year to $7.32 billion, improving from the 2.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.25 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at Johnson Controls’s peers in the commercial building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AZZ delivered year-on-year revenue growth of 2.6%, meeting analysts’ expectations, and Insteel reported a revenue decline of 14.7%, falling short of estimates by 7.5%. AZZ’s stock price was unchanged after the resultsand Insteel’s price followed a similar reaction.

Read our full analysis of AZZ’s results here and Insteel’s results here.

Investors in the commercial building products segment have had steady hands going into earnings, with share prices flat over the last month. Johnson Controls is down 1.7% during the same time and is heading into earnings with an average analyst price target of $80.41 (compared to the current share price of $74.23).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.