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Johnson Controls Declares $0.29 Per Share Dividend

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Price movement

Johnson Controls (JCI) has a market cap of $28.8 billion. It rose by 0.29% to close at $44.32 per share on July 20, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.27%, -0.25%, and 13.9%, respectively, on the same day.

JCI is trading 1.6% above its 20-day moving average, 2.1% above its 50-day moving average, and 9.8% above its 200-day moving average.

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Related ETF and peers

The Vanguard Large-Cap ETF (VV) invests 0.15% of its holdings in Johnson Controls. The ETF tracks a market-cap-weighted index that covers 85% of the market capitalization of the US equity market. The YTD price movement of VV was 7.3% on July 20, 2016.

The market caps of Johnson Controls’ competitors are as follows:

  • Honeywell International (HON): $92.1 billion
  • Raytheon (RTN): $41.0 billion
  • Lear (LEA): $8.5 billion

Johnson Controls declares dividend

Johnson Controls has declared a regular quarterly cash dividend of $0.29 per share on its common stock. The dividend will be paid on August 19, 2016, to shareholders of record at the close of business on August 5, 2016.

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Performance in fiscal 2Q16

Johnson Controls reported fiscal 2Q16 net sales of $9.0 billion, a decline of 1.8% compared to net sales of $9.2 billion in fiscal 2Q15. The company’s cost of sales as a percentage of net sales and income from continuing operations before income taxes fell by 2.4% and 34.7%, respectively, in fiscal 2Q16 compared to the same period last year. It reported restructuring and impairment costs of $2.3 billion in fiscal 2Q16.

Its net income and EPS (earnings per share) fell to -$5.3 billion and -$0.82, respectively, in fiscal 2Q16. That compares to $5.3 billion and $0.80, respectively, in fiscal 2Q15.

Johnson Controls’ cash and cash equivalents fell by 40.0%, and its inventories rose by 22.9% in fiscal 2Q16 compared to fiscal 4Q15. Its current ratio fell to 0.94x in fiscal 2Q16 compared to 1.0x in fiscal 4Q15.

Projections

The company has made the following projections:

  • EPS of $3.85–$4 per share for fiscal 2016
  • effective tax rate of 17% for fiscal 2016
  • EPS of $1.01–$1.04 for fiscal 3Q16
  • repurchase of $5.0 billion worth of shares before the end of fiscal 2016

This guidance doesn’t include transaction, integration, and separation costs or other non-recurring items.

Now we’ll take a look at General Motors.

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