Analyst Estimates: Here's What Brokers Think Of Johnson Controls International plc (NYSE:JCI) After Its Full-Year Report
It's been a pretty great week for Johnson Controls International plc (NYSE:JCI) shareholders, with its shares surging 11% to US$158 in the week since its latest full-year results. Results were roughly in line with estimates, with revenues of US$26b and statutory earnings per share of US$4.68. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Johnson Controls International from 18 analysts is for revenues of US$28.3b in 2027. If met, it would imply a meaningful 10% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 31% to US$6.22. In the lead-up to this report, the analysts had been modelling revenues of US$27.7b and earnings per share (EPS) of US$5.99 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
See our latest analysis for Johnson Controls International
Despite these upgrades,the analysts have not made any major changes to their price target of US$175, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Johnson Controls International analyst has a price target of US$201 per share, while the most pessimistic values it at US$136. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Johnson Controls International's past performance and to peers in the same industry. The analysts are definitely expecting Johnson Controls International's growth to accelerate, with the forecast 10% annualised growth to the end of 2027 ranking favourably alongside historical growth of 0.06% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Johnson Controls International is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Johnson Controls International's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$175, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Johnson Controls International. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Johnson Controls International going out to 2029, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we've spotted with Johnson Controls International .
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