Johnson Controls Inc.
) hit a new 52-week high of $36.93 on May 13, which is above its
previous level of $36.55, and closed at $36.82 on the same date.
The closing price represented a solid one-year return of 19.3%
and year-to-date return of 18.0%.
JOHNSON CONTROL (JCI): Free Stock Analysis
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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 $25.2 billion. Average volume of
shares traded over the last three months stood at approximately
Shares of the company started escalating, following its
impressive guidance despite disappointing fiscal 2013-second
quarter results released on Apr 23.
Johnson Controls posted a 23.6% decline in adjusted earnings to
42 cents per share in the second quarter of fiscal 2013 ended Mar
31, 2013 from 55 cents in the same quarter of prior fiscal year,
but earnings were in line with the Zacks Consensus Estimate. Net
income declined 24.1% to $287.0 million from $378.0 million in
the second quarter of fiscal 2012.
Revenues in the quarter declined 1.3% $10.43 billion but
marginally exceeded the Zacks Consensus Estimate of $10.39
billion. The decline was attributable to lower revenues in the
company's Automotive Experience and Building Efficiency segments.
Johnson Controls reiterated its guidance to generate earnings
between $2.60 and $2.70 per share in fiscal 2013, which is higher
than $2.56 in fiscal 2012. For the third quarter of fiscal 2013,
the company expects earnings per share of 75 cents.
The company also expects that it will record better performance
in the second half of 2013 due to benefits from restructuring
initiatives, higher profitability from the Building Efficiency
segment and improvements in European and South American
Automotive Experience businesses. It also expects Power Solutions
business to record higher profitability in the second half of
Currently, shares of Johnson Controls retain a Zacks Rank #3,
which translates into a short-term rating (1-3 months) of Hold.
Some other stocks that are performing well in the broader
industry where Johnson Controls operates include
STRATTEC Security Corporation
Tower International, Inc.
). All these companies carry a Zacks Rank #1 (Strong Buy).