Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at 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 0.9% while next quarter’s revenue guidance was 0.6% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.9% 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 $6.44 billion, up 3.1% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

"Johnson Controls delivered a strong year, with double-digit EPS growth and a record backlog of $15 billion, up 13%, reflecting sustained demand in our core verticals," said Joakim Weidemanis, CEO.

Interestingly, the stock is up 5.1% since reporting and currently trades at $116.67.

Is now the time to buy Johnson Controls? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 $358.2 million, up 4.6% year on year, outperforming analysts’ expectations by 2.1%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Apogee achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 19.1% since reporting. It currently trades at $33.51.

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

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 $177.4 million, up 32.1% year on year, falling short of analysts’ expectations by 1.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 19.1% since the results and currently trades at $30.38.

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 $417.3 million, up 2% year on year. This number came in 2.1% below analysts' expectations. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ revenue and EBITDA estimates.

AZZ achieved the highest full-year guidance raise among its peers. The stock is down 6.6% since reporting and currently trades at $98.65.

Read our full, actionable report on AZZ here, it’s free for active Edge members.

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 $219.3 million, down 4.7% year on year. This print missed analysts’ expectations by 3.9%. It was a disappointing quarter as it also produced full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Janus had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update among its peers. The stock is down 34.5% since reporting and currently trades at $6.08.

Read our full, actionable report on Janus here, it’s free for active Edge members.

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), 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 for 2025.

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