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Q3 Rundown: Johnson Controls (NYSE:JCI) Vs Other Commercial Building Products Stocks

By: StockStory

November 26, 2024 at 04:19 AM EST

JCI Cover Image

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the commercial building products industry, including Johnson Controls (NYSE: JCI) and its peers.

Commercial building products companies, which often serve more complicated projects, can supplement their core business with higher-margin installation and consulting services revenues. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of commercial construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of commercial building products companies.

The 5 commercial building products stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 5.6%.

Thankfully, share prices of the companies have been resilient as they are up 6.2% on average since the latest earnings results.

Johnson Controls (NYSE: JCI)

Founded after patenting the electric room thermostat, Johnson Controls (NYSE: JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.

Johnson Controls reported revenues of $6.25 billion, up 6.7% year on year. This print fell short of analysts’ expectations by 14.7%. Overall, it was a softer quarter for the company with full-year EPS guidance missing analysts’ expectations.

"We are very pleased with our strong end to the fiscal year and our fourth quarter results, which delivered double-digit organic sales growth and robust margin expansion," said George Oliver, Chairman and CEO.

Johnson Controls pulled off the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is up 12.2% since reporting and currently trades at $84.01.

Read our full report on Johnson Controls here, it’s free.

Best Q3: Apogee (NASDAQ: APOG)

Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ: APOG) sells architectural products and services such as high-performance glass for commercial buildings.

Apogee reported revenues of $342.4 million, down 3.2% year on year, outperforming analysts’ expectations by 2%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

Apogee scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 19% since reporting. It currently trades at $81.44.

Is now the time to buy Apogee? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Insteel (NYSE: IIIN)

Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE: IIIN) provides steel wire reinforcing products for concrete.

Insteel reported revenues of $134.3 million, down 14.7% year on year, falling short of analysts’ expectations by 7.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Interestingly, the stock is up 3.3% since the results and currently trades at $30.47.

Read our full analysis of Insteel’s results here.

AZZ (NYSE: AZZ)

Responsible for projects like nuclear facilities, AZZ (NYSE: AZZ) is a provider of metal coating and power infrastructure solutions.

AZZ reported revenues of $409 million, up 2.6% year on year. This result lagged analysts' expectations by 0.7%. It was a slower quarter as it also logged full-year revenue and EPS guidance missing analysts’ expectations.

AZZ pulled off the highest full-year guidance raise among its peers. The stock is up 17.2% since reporting and currently trades at $95.54.

Read our full, actionable report on AZZ here, it’s free.

Janus (NYSE: JBI)

Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE: JBI) is a provider of easily accessible self-storage solutions.

Janus reported revenues of $230.1 million, down 17.9% year on year. This print lagged analysts' expectations by 7.3%. Overall, it was a disappointing quarter as it also recorded full-year revenue guidance missing analysts’ expectations.

Janus had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 28.1% since reporting and currently trades at $7.41.

Read our full, actionable report on Janus here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), has fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty heading into 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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Symbol	Price	Change (%)
AMZN	226.97	+2.76 (1.23%)
AAPL	268.81	+5.99 (2.28%)
AMD	259.67	+6.75 (2.67%)
BAC	53.02	+0.45 (0.86%)
GOOG	269.93	+9.42 (3.62%)
META	750.82	+12.46 (1.69%)
MSFT	531.52	+7.91 (1.51%)
NVDA	191.49	+5.23 (2.81%)
ORCL	281.40	-1.93 (-0.68%)
TSLA	452.42	+18.70 (4.31%)

Symbol

Price

Change (%)

AMZN

226.97

+2.76 (1.23%)

AAPL

268.81

+5.99 (2.28%)

AMD

259.67

+6.75 (2.67%)

BAC

53.02

+0.45 (0.86%)

GOOG

269.93

+9.42 (3.62%)

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