Margin Expansion To Drive Johnson Controls’ Q3?

Johnson Controls (NYSE: JCI) will report its Q3 fiscal 2023 (fiscal year ends in September) results on Wednesday, Aug 2. We expect the company’s revenues to come in at $7.2 billion, aligning with the consensus estimate. This would mark year-over-year growth of about 8%. Earnings will likely come in at about $1.03 on a per-share and adjusted basis, also falling in line with the consensus estimate. See our interactive dashboard analysis on Johnson Controls Earnings Preview for more details on how the company’s revenues and earnings will likely trend for the quarter.

The company will likely continue to benefit from better price realization and strong demand trends for its commercial HVAC and fire and safety products. Looking at Q2 2023, Johnson Controls’ revenues were up 10% to $6.7 billion, driven by a 13% rise in North America sales and an 8% rise in Global Products segment sales. Global Products sales should continue to trend higher, driven by robust demand for fire detection, industrial refrigeration, and commercial HVAC products, a trend seen in the recent past.