Johnson Controls Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Johnson Controls (NYSE:JCI) will unveil its latest earnings on Tuesday, October 30, 2012. 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 analyst estimate is for profit of 75 cents per share, no change from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 76 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 75 cents during the last month. Analysts are projecting profit to rise by 4.6% compared to last year’s $2.52.

Past Earnings Performance: Last quarter, the company fell short of estimates by 0 cents, coming in at net income of 64 cents per share against a mean estimate of profit of 67 cents. The company fell in line with expectations in the second quarter.

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A Look Back: In the third quarter, profit rose 16.8% to $417 million (61 cents a share) from $357 million (52 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 2.1% to $10.58 billion from $10.36 billion.

Stock Price Performance: Between September 26, 2012 and October 24, 2012, the stock price dropped $1.56 (-5.7%), from $27.42 to $25.86. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 12, 2012, when shares rose for 11 straight days, increasing 14.5% (+$4.45) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 13.4% (-$4.26) over that span.

Analyst Ratings: With 11 analysts rating the stock as a buy, none rating it as a sell and 11 rating it as a hold, there are indications of a bullish outlook.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 9.3% in the first quarter and 2.8% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 19.3% in the fourth quarter of the last fiscal year, 9.2% in the first quarter and 4.2% in the second quarter before increasing again in the third quarter.

Wall St. Revenue Expectations: Analysts predict a rise of 0.7% in revenue from the year-earlier quarter to $10.87 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.16 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 regressed in this liquidity measure from 1.17 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 2.4% to $10.81 billion while assets rose 1.7% to $12.57 billion.

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

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