Q2 Rundown: Johnson Controls (NYSE:JCI) Vs Other Commercial Building Products Stocks
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at commercial building products stocks, starting with Johnson Controls (NYSE:JCI).
Commercial building products companies, which often serve more complicated projects, can supplement their core business with higher-margin installation and consulting services revenues. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of commercial construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of commercial building products companies.
The 5 commercial building products stocks we track reported a weaker Q2. As a group, revenues missed analysts’ consensus estimates by 2.9%.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, commercial building products stocks have held steady amidst all this with share prices up 3.3% on average since the latest earnings results.
Johnson Controls (NYSE:JCI)
Founded after patenting the electric room thermostat, Johnson Controls (NYSE:JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.
Johnson Controls reported revenues of $7.23 billion, up 1.4% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a mixed quarter for the company with strong earnings guidance for the full year but underwhelming earnings guidance for the next quarter.
"Our third quarter results exceeded expectations with robust margin expansion, strong free cash flow generation, and continued Service demand," said George Oliver, Chairman and CEO.
Interestingly, the stock is up 2.3% since reporting and currently trades at $70.60.
Is now the time to buy Johnson Controls? Access our full analysis of the earnings results here, it’s free.
Best Q2: Apogee (NASDAQ:APOG)
Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ:APOG) sells architectural products and services such as high-performance glass for commercial buildings.
Apogee reported revenues of $331.5 million, down 8.3% year on year, in line with analysts’ expectations. It was a strong quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 8.2% since reporting. It currently trades at $64.
Is now the time to buy Apogee? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Janus (NYSE:JBI)
Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE:JBI) is a provider of easily accessible self-storage solutions.
Janus reported revenues of $248.4 million, down 8.2% year on year, falling short of analysts’ expectations by 12%. It was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations and underwhelming EBITDA guidance for the full year.
Janus had the weakest performance against analyst estimates in the group. As expected, the stock is down 17.8% since the results and currently trades at $10.92.
Read our full analysis of Janus’s results here.
AZZ (NYSE:AZZ)
Responsible for projects like nuclear facilities, AZZ (NYSE:AZZ) is a provider of metal coating solutions and infrastructure solutions.
AZZ reported revenues of $413.2 million, up 5.7% year on year, surpassing analysts’ expectations by 2.8%. Taking a step back, it was a slower quarter for the company with a miss of analysts’ earnings estimates.
AZZ delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 3.5% since reporting and currently trades at $79.17.
Read our full, actionable report on AZZ here, it’s free.
Insteel (NYSE:IIIN)
Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE:IIIN) provides steel wire reinforcing products for concrete.
Insteel reported revenues of $145.8 million, down 12% year on year, falling short of analysts’ expectations by 4.7%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
Insteel had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $32.34.
Read our full, actionable report on Insteel here, it’s free.
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