Johnson Controls (JCI) recently beat analyst estimates, and management raised its earnings guidance for fiscal year 2010.
Johnson Controls is a Zacks #2 Rank stock that trades at 15.3x fiscal 2010 EPS estimates and 12.2x fiscal 2011 EPS estimates.
Growth and Income
Analysts estimate that Johnson Controls will grow its earnings per share at 12.0% per year for the next several years. Its stock also has a dividend yield of 1.7%.
Business
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Its business segments include building efficiency, automotive experience, and power solutions.
Strong Second-Quarter Results
On April 23, Johnson Controls reported net sales of $8.3 billion, up 31.8% from the year-earlier period. The company earned $0.40, topping the Zacks Consensus Estimate by 4 cents, or 11.1%.
Company Guidance
Management indicated that it remains encouraged by the steady improvement in the automotive industry and increased its earnings guidance for fiscal year 2010.
The company now expects net sales of $33.5 billion and EPS of $1.90-$1.95. Its prior guidance was $33 billion in new sales and EPS of $1.70-$1.75.
Analysts Boost Estimates
Analysts covering JCI increased their estimates after the company’s better-than-expected Q2 results and higher EPS guidance.
In the last 30 days, the Zacks Consensus for fiscal 2010 is up 17 cents, or 9.9%, to $1.99, while the Zacks Consensus for 2011 is up 21 cents, or 9.2%, to $2.49.
The Chart
JCI shares are up 58% in the last year. The stock experienced a a pretty steady climb from July 2009 through April 2010. After peaking on April 26 at $35.77, the stock sold-off sharply, falling to its 200-day moving average. JCI has rebounded, but is still about 15% off its 52-week high.
