Tuesday, June 10, 2014

Is Johnson Controls a Buy?

It's rare that someone can point to a company that has just delivered an increase in quarterly earnings of more than 50% and say that its results were "mixed," but that's exactly the case with Johnson Controls Inc.  . Its automotive-based segments gave mixed results, while its construction-based segment's results were disappointing. Moreover, its guidance for the construction industry was somewhat at odds with what rivals like Lennox International   and Ingersoll-Rand  reported. But there is a lot to like about the company, and investors should follow the current share price decline with a lot of interest.


What investors were expecting from Johnson Controls
The company reports results within three separate segments, and a look at its segmental income for the first half reveals how it makes money. For ease of reference, its power solutions business is a leading supplier of automotive batteries, automotive experience sells automotive finishing (seating, interiors, etc.), and building efficiency sells heating, ventilation, and air conditioning, or HVAC, solutions.


READ THE FULL ARTICLE LINKED HERE



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