Johnson Controls Q3 Profit Rises, Beating Estimates; Guides Fiscal 2013 EPS Above Views (JCI)

Johnson Controls Q3 Profit Rises, Beating Estimates; Guides Fiscal 2013 EPS Above Views (JCI)


Auto parts supplier Johnson Controls Inc (JCI) reported early on Thursday that it saw a 32% increase in third quarter profits. Adjusted earnings were able to top analysts’ views, but revenues came up short of expectations. The company also issued fourth quarter and fiscal 2013 earnings guidance that was well above analysts’ estimates.

The Milwaukee, Wisconsin-based company said its third quarter net income rose to $571 million, or 83 cents per share, up from $431 million, or 63 cents per share, in the same period a year ago.

Excluding certain items, which include a number of one-time tax benefits and restructuring charges, Johnson Controls said its adjusted net income was $535 million, or 78 cents per share, in the period. On average, analysts polled by Thompson Reuters were expecting the company to post earnings of 75 cents per share.

The company’s revenues in the third quarter rose 2% to $10.83 billion from $10.58 billion last year. Analysts were expecting the company to post revenues of $11.00 billion in the third quarter.

Looking ahead, the company said it expects fourth quarter earnings to be between 93 cents and 95 cents per share. Analysts are expecting earnings of 92 cents per share from JCI in the fourth quarter.

For fiscal 2013, the company sees earnings coming in between $2.64 and $2.66 per share, higher than the consensus analysts view of earnings of $2.61 per share.

In a separate announcement, Johnson Controls said it has signed a definitive agreement to sell its Automotive Electronics’ HomeLink product line to Gentex Corporation for about $700 million. The transaction is expected to close late in the fourth early or early in the first quarter of fiscal 2014.

Johnson Controls shares were up $1.72, or 4.61%, during pre-market trading on Thursday. The stock is up 21.75% year-to-date.

The Bottom Line
Shares of Johnson Controls (JCI) have a dividend yield of 2.04% based on last nights closing price of $37.34 and the company’s annualized dividend payout of 76 cents per share.

Johnson Controls Inc (JCI) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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