Johnson Controls First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Johnson Controls (NYSE:JCI) will unveil its latest earnings tomorrow, Friday, January 18, 2013. Johnson Controls is a technology and industrial company focused on building efficiency, automotive experience and power solutions.

Johnson Controls Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 51 cents per share, a decline of 15% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 63 cents. Between one and three months ago, the average estimate moved down. It has risen from 50 cents during the last month. Analysts are projecting profit to rise by 1.9% versus last year to $2.64.

Last quarter, the company came in at profit of 77 cents per share against a mean estimate of net income of 75 cents per share, beating estimates after missing them in the previous quarter. In the third quarter of the last fiscal year, it missed forecasts by 3 cents.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 93.5% to $35 million (5 cents a share) from $538 million (78 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 3.7% to $10.39 billion from $10.79 billion.

Here’s how Johnson Controls traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

JCI

Analyst Ratings: There are mostly holds on the stock with 13 of 21 analysts surveyed giving that rating.

Wall St. Revenue Expectations: On average, analysts predict $10.24 billion in revenue this quarter, a decline of 1.7% from the year-ago quarter. Analysts are forecasting total revenue of $42.82 billion for the year, a rise of 2% from last year’s revenue of $41.96 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 9.2% in the first quarter of the last fiscal year, 4.2% in the second quarter of the last fiscal year and 2.1%in the third quarter of the last fiscal year before dropping in the fourth quarter of the last fiscal year.

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 9.3% in the first quarter of the last fiscal year, 2.8% in the second quarter of the last fiscal year and 16.8% in the third quarter of the last fiscal year before declining in the fourth quarter of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.17 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.16 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 0.9% to $12.67 billion while liabilities rose by 0.4% to $10.86 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)