Johnson Controls has boosted its full-year earnings forecast to $1.90 to $1.95 a share from the earlier guidance of $1.70 to $1.75 a share and expects net sales to increase to $33.5 billion from the previous guidance of $33 billion.
"We continue to be encouraged by the steady improvement in the automotive industry and therefore have increased our earnings outlook for 2010," Johnson Controls chief executive Stephen Roell, said in a written statement.
Johnson Controls on Friday reported second quarter net income of $274 million, or 40 cents a share vs. a $193 million or 33 cents-a-share loss a year ago. Net sales were $8.3 billion, up 32% from the previous year. The company said earnings adjusted for non-recurring items were 43 cents, beating the consensus estimate of 39 cents a share on revenue of $7.92 billion.For the second quarter, Johnson Controls reported a double-digit increase in sales with each of the company's businesses reporting higher profitability. S&P has reiterated its strong buy opinion on Johnson Controls stock. "We expect a modest drag on sales and profits from the weaker Euro against the dollar, but this should be more than offset by growth from all segments and most regions," S&P analyst Efraim Levy said in an investor note. "China sales and profits should rise, but this should be largely reflected in the equity income line." Also noteworthy: "we liked Johnson Controls," Jim Cramer said on his RealMoney column Friday. -- Reported by Andrea Tse in New York
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV