The Dividend Daily

Automotive systems maker Johnson Controls, Inc. (JCI) on Tuesday posted better-than-expected fourth quarter earnings, and reiterated its fiscal 2010 full-year forecast.

The Milwaukee-based company reported fiscal fourth quarter net income of $300 million, or 47 cents per share, compared with just $16 million, or 3 cents per share, in the year-ago period. Excluding items, adjusted profit was 52 cents per share.

Revenue plunged 15% from last year, however, to $7.9 billion.

On average, Wall Street analysts expected a slightly smaller profit of 51 cents per share, on lower sales of $7.8 billion.

The company backed its full-year forecast for 2010 profit of $1.35 to $1.45 per share, while analysts currently exepect $1.54 per share.

Johnson Controls shares fell 35 cents, or -1.3%, in morning trading Tuesday.

The Bottom Line
We have avoided shares of JCI since our early June coverage began last year, when the stock was trading at $31.50. The company has a 1.98% dividend yield, based on last night’s closing stock price of $26.28. The stock has technical support in the $24 price area. If the shares can continue their recent run, we see overhead resistance around the $27-$30 price levels. We would remain on the sidelines for now.

Johnson Controls, Inc. (JCI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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