(Reuters) -Johnson Controls International raised its annual profit forecast on Wednesday, after beating third-quarter profit estimates on the back of sustained demand for its electrical and industrial equipment.
The Cork, Ireland-based firm, which makes liquid cooling systems for IT equipment as well as specialized security and fire systems, has been benefiting from the rising data center construction as businesses ramp up spending on AI technologies.
Shares of the company, however, were down nearly 2% in premarket trading following the results.
“While these are modestly better operating results with a guidance (raise), in this earnings season, modest beats and raises have not been getting bought,” RBC Capital Markets analyst Dray Deane said.
He expects Johnson Controls’ stock to fall by low-single-digit percent on Tuesday.
The company expects 2025 adjusted profit between $3.65 and $3.68 per share, compared with previous expectations of $3.60 apiece.
It reported adjusted profit of $1.05 per share for the third quarter, beating analysts’ average estimate of $1.01, according to data compiled by LSEG.
Johnson Controls’ total quarterly revenue came in at $6.05 billion, compared with Wall Street expectations of $6.01 billion.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Shreya Biswas)
