Here's What To Expect From Johnson Controls' Q1

Johnson Controls (NYSE: JCI) is scheduled to report its Q1 fiscal 2023 results on Wednesday, February 1. We expect Johnson Controls stock to move higher in the near term, with revenue and earnings likely falling marginally above the consensus estimates. Strong demand trends and better price realization for its HVAC products should drive the companys performance in Q1. Although we expect the company to post upbeat results, its stock is fully valued, as discussed below. Our interactive dashboard analysis on Johnson Controls Earnings Previewhas additional details.

(1) Revenues expected to be marginally above the consensus estimates

• Trefis estimates Johnson Controls FYQ1 2023 revenues to be around $6.3billion, reflecting about a 7% y-o-y rise and slightly above the $6.2 billion consensus estimate.
• The company has guided for low double-digit organic revenue growth in Q1. This will likely be driven by better price realization, a trend seen in the recent past.
• The companys top line should also benefit from its Tempered Networks (a cyber security company) acquisition last year.
• Looking back at Q4, Johnson Controls reported a 5% rise in top-line to $6.7 billion, led by higher sales for its global products and sales in North America. At the same time, Europe, the Middle East, Africa, and Latin America saw a decline in sales.
• Our dashboard onJohnson Controls Revenuesoffers more details on the companys segments.

(2) EPS likely to be above the consensus estimates