Johnson Controls Inc.
) hit 52-week high of $34.52 on Mar 13. The new high possible
stemmed from rising automobile demand across the world and
improving building markets in Asia. Their previous 52-week high
Johnson Controls is a diversified industrial company that caters
to automotive, building and power solutions market at the same
time. It has a market cap of $23.6 billion.
The Zacks Rank #3 (Hold) company posted a 16.1% fall in earnings
to 52 cents per share in the first quarter of fiscal 2013 ended
Dec 31, 2012 from 62 cents in the same quarter of prior fiscal
year as global demand for its products has weakened. However,
profits surpassed the Zacks Consensus Estimate by a penny. Net
income declined 16.5% to $354.0 million from $424.0 million in
the first quarter of fiscal 2012.
Revenues in the quarter were flat at $10.4 billion, but exceeded
the Zacks Consensus Estimate of $10.2 billion. Revenues remain
unchanged as the benefit from strong business backlog was offset
by weak demand across the globe, especially in Europe.
Johnson Controls reiterated its guidance to generate lower
earnings in the first half of fiscal 2013 compared with the year
ago period due to weak end markets and adverse effects of foreign
For the second quarter of fiscal 2013, the company expects
earnings per share between 40 cents and 42 cents taking the
automotive production environment in Europe, short-term delays in
flexing labor in the region and a high level of launch activity
Few stocks that are performing well in the industry where Johnson
Controls operates include
STRATTEC Security Corporation
). Both Gentherm and STRATTEC carry a Zacks Rank #1 (Strong Buy)
while Magna retains a Zacks Rank #2 (Buy).
JOHNSON CONTROL (JCI): Free Stock Analysis
MAGNA INTL CL A (MGA): Free Stock Analysis
STRATTEC SEC CP (STRT): Free Stock Analysis
GENTHERM INC (THRM): Free Stock Analysis
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