|July 18, 2014|
|07:05 EDT||JCI||Johnson Controls reports Q3 adjusted EPS 84c, consensus 83c|
Reports Q3 revenue $10.81B, consensus $10.84B
News For JCI From The Last 14 Days
|October 9, 2015|
|16:45 EDT||JCI||Stocks have strong week ahead of ramp up of earnings season|
Stocks ended the week with strong gains, posting one of their best weekly performances of the year, as investors brace for the earnings season to pick up in earnest. Next week's earnings calendar is dominated by the banks, but will also includes reports from high-flier Netflix (NFLX) and chip making giant Intel (INTC). MACRO NEWS: In the U.S., Markit's services PMI dropped to 55.1 in the final September print, compared to the preliminary reading of 55.6 and August's 56.1 figure. ISM's services index dropped 2.1 points to 56.9 in September, versus expectations for a more modest pullback to a reading of 57.5. Initial jobless claims dropped to 263,000 in the week ended October 3, versus expectations for 273,00 first-time claims. Import prices slid 0.1% in September, while export prices declined 0.7%. Wholesale inventories edged up 0.1% in August, while sales fell 1.0%... The FOMC minutes for the September 16-17 policy meeting didn't read very hawkish, as some may have feared would be the case. The minutes showed "many members" thought rate hike conditions had been met or would be met soon. However, "several members" were worried that the downside risks to growth and inflation had increased, leading the committee to feel it was "prudent to wait" for additional information confirming that the economic outlook had not deteriorated and bolstering members' confidence that inflation would gradually move up. COMPANY NEWS: Shares of General Electric (GE) advanced after activist investor Nelson Peltz disclosed that his firm, Trian Fund Management, has accumulated a $2.5B stake, making it one of the company's top ten shareholders. Trian, which believes GE is "executing a bold transformation" from a broad conglomerate into an industrial company, predicted that GE stock may be worth $40-$45 per share by 2017... Despite cutting its guidance for the second time in less than four months, DuPont (DD) gained after announcing that chairwoman and CEO Ellen Kullman would be retiring from the company, spurring investor hopes for an accelerated pace of change at the industrial giant, which is also a Peltz holding. The news prompted a number of analysts to weigh in, with Deutsche Bank saying the changeover is "highly likely" to lead to further breakup of the company under interim Chief Edward Breen, who broke up Tyco (TYC) twice when he ran that company... Freeport-McMoran (FCX) shares rose after the company added two Carl Icahn representatives to its board, with Icahn himself remarking that shareholders will "generally" benefit from the move... Polycom (PLCM) and Mitel (MITL) both gained after activist investor Elliott Management disclosed stakes in both companies and urged the two to consider a combination... Shares of Twitter (TWTR) advanced after the company appointed co-founder and interim Chief Executive Jack Dorsey as permanent CEO. Analysts welcomed the news, saying Dorsey was simply "too good to pass up" despite his concurrent role as head of payments company Square... On the deal front, the week's big news was made by privately held Dell, as The Wall Street Journal and CNBC reported that Dell and private equity partner Silver Lake are in "advanced talks" to buy EMC (EMC). Following up on the story, Re/code's Arik Hesseldahl reported today that Dell is offering $27.25 per share in cash and specialized stock in VMware (VMW) to EMC shareholders in a deal that would equal at least $30 per share in value. Such a takeover would be worth more than $50B, making the transaction the biggest tech deal of all time, Hesseldahl noted. In other M&A news, EnerSys (ENS) gained after the Wall Street Journal reported that Johnson Controls (JCI) is in early talks to buy the battery maker... Yum! Brands (YUM) moved sharply lower after the owner of the KFC, Taco Bell and Pizza Hut restaurant brands reported worse than expected quarterly results and lowered its fiscal year guidance. Yum cited a slower than expected recovery in its sales in China, as well as stronger foreign exchange headwinds, for its reduced outlook... Drugmaker Valeant (VRX) had another down week after its alleged "price hike" business strategy was highlighted in reports by the New York Times and Barron's last weekend... Tesla (TSLA) also declined on a weekly basis after Morgan Stanley analysts lowered sales forecasts for the company's recently-launched Model X, Baird analyst Ben Kallo downgraded Tesla to Neutral and Barclays analyst Brian Johnson downgraded the stock to Underweight, his firm's equivalent of a sell rating... Alcoa (AA) dropped nearly 7% on Friday after the company unofficially kicked off the earnings season by reporting lower than expected revenue and profits. INDEXES: The Dow gained about 3.72% to close at 17,084.49, the S&P 500 rose about 3.25% to close at 2,014.89, and the Nasdaq advanced about 2.58% to close at 4,830.47.
|09:00 EDT||JCI||Barclays says sell Tesla ahead of 'significant' production miss|
The outlook for the U.S. Autos sector has improved recently, but the risks for one high-profile name in the space are rising, according to a Barclays analyst, who upgraded his industry view this morning but cut his rating on Tesla (TSLA). SELL TESLA: Barclays analyst Brian Johnson downgraded Tesla Motors to Underweight, his firm's equivalent of a sell rating, as he believes the stock may be "challenged in the months ahead" with negative data points emerging. The Model X rollout did not bring a rise in shares while "several factors" could push margins below current consensus estimates, Johnson told investors in a research note. The analyst believes the "slow" Model X ramp supports his view that Tesla will "significantly miss" its 2015 delivery guidance. While bulls on the stock view Tesla as the next Ford (F), "crossing the chasm" into mainstream car production is "harder than it looks," argues Johnson, who cut his price target on shares of the electric car maker to $180 from $190. BETTER OUTLOOK FOR U.S. AUTOS: In a separate note this morning, Johnson upgraded the U.S. Autos & Auto Parts industry to Neutral from Negative, saying the China car market is likely to have a "softer landing" than he previously expected. Further, the Volkswagen (VLKAY) diesel scandal is unlikely to negatively impact European production trends or drive a major overhang on most U.S. autos names, Johnson told investors. Noting that his colleagues in the broader industrials space are turning more negative, Johnson said the autos sector is looking more attractive in comparison, pointing specifically to strong sales trends in the U.S. and Western Europe along with stabilizing sales in China. The analyst recommends owning Mobileye (MBLY), Harman (HAR) and Visteon (VC), which he believes should all benefit from their exposure to the trend toward connected cars. Johnson also suggests owning auto components maker Johnson Controls (JCI), which he thinks will benefit from an acceleration away from diesel cars in Europe. CAUTION ON JAPANESE AUTOS: Meanwhile this morning, Jefferies analyst Takaki Nakanishi downgraded Honda Motor (HMC) and Toyota (TM) to Hold after cutting his view on the Japan Autos & Auto Parts sector to Bearish. The Volkswagen diesel scandal will trigger a stronger regulatory environment and an industry-wide worsening of the long-term earnings environment, according to Nakanishi, who cut his price target for Honda shares to $34.24 from $37.92 and lowered his price target for Toyota shares to $133.54 from $151.63. PRICE ACTION: In pre-market trading, Tesla slid 3.4% to $219 per share. The stock has dropped about 8.6% over the last month prior to today's open.
|05:46 EDT||JCI||U.S. Autos & Auto Parts sector upgraded to Neutral at Barclays|
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|October 7, 2015|
|07:44 EDT||JCI||Johnson Controls has significant upside with EnerSys synergies, says UBS|
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|October 6, 2015|
|16:57 EDT||JCI||On The Fly: Top stock stories for Tuesday|
Stocks began the session modestly lower on the heels of yesterday's significant gains, which marked the year's first five-day winning streak for the S&P. Somewhat paring their opening losses today, the Dow and S&P were helped by gains from Alcoa (AA) and General Electric (GE), though the indexes remained mixed as they limped into the close. ECONOMIC EVENTS: The U.S. trade deficit expanded 15.6% to $48.3B in August, coming roughly in line with analyst expectations for $48.5B. On a region-specific basis, the trade gap with China spiked to $35B from a previous $31.6B, while the EU balance decreased to $13.8B from $15.2B. COMPANY NEWS: Despite cutting its guidance for the second time in less than four months, DuPont (DD) rose 7.70% to $55.23 after announcing that chairwoman and CEO Ellen Kullman would be retiring from the company, spurring investor hopes for an accelerated pace of change at the industrial giant. The news prompted a number of analysts to weigh in, with Deutsche Bank saying the changeover is "highly likely" to lead to further breakup of the company under interim Chief Edward Breen, who broke up Tyco (TYC) twice when he ran the company. MAJOR MOVERS: Among the notable gainers was PMC-Sierra (PMCS), which rose $2.55, or 33.16%, to $10.24 after agreeing to be acquired by Skyworks Solutions (SWKS), whose shares slid 1.42% following the news. Also higher was EnerSys (ENS), which gained $4.98, or 8.46%, to $63.86 after the Wall Street Journal reported that Johnson Controls (JCI) is in early talks to buy the battery maker. Additionally, Arista Networks (ANET) jumped 5.43% after the U.S. Patent and Trademark agreed to review two Cisco (CSCO) patents, potentially signaling a win for Arista in its legal dispute with the networking giant. Among the noteworthy losers was Exact Sciences (EXAS), which crashed $8.55, or 46.14%, to $9.98 after regulators issued preliminary guidelines identifying the company's main product, the Cologuard colon cancer test, as "an alternative screening test" to be used in "select clinical circumstances." Also lower was Tesla (TSLA), which fell $4.69, or 1.91%, to $241.46 after after Morgan Stanley analysts lowered sales forecasts for the company's recently-launched Model X. INDEXES: The Dow gained 13.76, or 0.08%, to 16,790.19, the Nasdaq declined 32.90, or 0.69%, to 4,748.36, and the S&P 500 dipped 7.13, or 0.36%, to 1,979.92.
|15:24 EDT||JCI||Johnson Controls in early talks to buy EnerSys, WSJ says |
Johnson Controls (JCI) is in early talks to buy battery maker EnerSys (ENS), as the conglomerate looks to spur profitability, says the Wall Street Journal, citing sources. Reference Link
|14:50 EDT||JCI||Johnson Controls in early talks to buy EnerSys, Dow Jones says|
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|October 2, 2015|
|10:00 EDT||JCI||On The Fly: Analyst Upgrade Summary |
Today's noteworthy upgrades include: Alexion (ALXN) upgraded to Overweight from Equal Weight at Morgan Stanley... BlackRock (BLK) upgraded to Buy from Neutral at UBS... Dunkin' Brands (DNKN) upgraded to Outperform from Underperform at CLSA... EnPro (NPO) upgraded to Buy from Neutral at Sidoti... Finish Line (FINL) upgraded to Neutral from Sell at Goldman... FutureFuel (FF) upgraded to Buy from Neutral at Roth Capital... Google (GOOG) upgraded to Outperform from Perform at Oppenheimer... Johnson Controls (JCI) upgraded to Buy from Neutral at Nomura... Kennametal (KMT) upgraded to Neutral from Underperform at BofA/Merrill... Lufthansa (DLAKY) upgraded to Buy from Hold at HSBC... Martin Marietta (MLM) upgraded to Buy from Neutral at Longbow... Northern Trust (NTRS) upgraded to Neutral from Sell at UBS... PMC-Sierra (PMCS) upgraded to Positive from Neutral at Susquehanna... Pfizer (PFE) upgraded to Overweight from Equal Weight at Morgan Stanley... Realogy (RLGY) upgraded to Buy from Neutral at Citi... Sarepta (SRPT) upgraded to Outperform from Neutral at Wedbush... Summit Materials (SUM) upgraded to Buy from Neutral at Goldman... TreeHouse (THS) upgraded to Buy from Neutral at BofA/Merrill... Vertex (VRTX) upgraded to Overweight from Equal Weight at Morgan Stanley.
|06:40 EDT||JCI||Johnson Controls upgraded to Buy from Neutral at Nomura|
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|October 1, 2015|
|08:33 EDT||JCI||Versar closes acquisition of Johnson Controls Security Systems|
Versar, (VSR) announced that it has completed the acquisition of Johnson Controls' (JCI) specialized federal security integration business, formerly known as Johnson Controls Security Systems. JCSS is a security systems integrator serving Federal clients by designing, installing and supporting complex physical security, network security, and facilities management systems. The purchase price of $20M was paid with a combination of cash and contingent consideration. Further, Versar has put in place a new banking relationship with Bank of America to support both the acquisition and ongoing working capital needs. JCSS, which will now be known as Versar Security Systems, is headquartered in Gaithersburg, Maryland, generated approximately $34less than in trailing twelve month revenues from key long term customers such as the Federal Aviation Administration and the Federal Emergency Management Agency.
|05:33 EDT||JCI||Johnson Controls, Hitachi complete global air conditioning JV|
Johnson Controls (JCI), Hitachi (HTHIY) and Hitachi Appliances announced the companies have completed their global joint venture agreement and will immediately commence operations of Johnson Controls-Hitachi Air Conditioning to provide global customers with a full range of world class air conditioning products and technology. Through the agreement, Johnson Controls has acquired a 60% ownership stake of the new entity, which has more than approximately $2.8B in sales, annually. Hitachi Appliances retains ownership of the remaining 40% of the company. The joint venture has approximately 14,000 employees and 24 global locations dedicated to design, engineering and manufacturing throughout Asia, Europe and Latin America. It will build on both organizations' technology, research and development leadership, as well as expanding marketing channels.
|September 30, 2015|
|10:00 EDT||JCI||On The Fly: Analyst Upgrade Summary|
Today's noteworthy upgrades include: Analog Devices (ADI) upgraded to Buy from Neutral at Citi... Asbury Automotive (ABG) upgraded to Neutral from Underperform at BofA/Merrill... Brookfield (BAM) upgraded to Outperform from Market Perform at BMO Capital... CNOOC (CEO) upgraded to Buy from Hold at Jefferies... Canadian Pacific (CP) upgraded to Buy from Neutral at Goldman... Citizens Financial (CFG) upgraded to Buy from Neutral at UBS... Esperion (ESPR) upgraded to Neutral from Sell at Chardan... HSBC (HSBC) upgraded to Buy from Neutral at UBS... Hecla Mining (HL) upgraded to Outperformer from Sector Performer at CIBC... Johnson Controls (JCI) upgraded to Outperform from Market Perform at William Blair... Level 3 (LVLT) upgraded to Buy from Neutral at UBS... Madison Square Garden (MSG) upgraded on asset value, share buyback outlook at Stifel... Medivation (MDVN) upgraded to Market Perform from Underperform at Cowen... PHH Corp. (PHH) upgraded to Buy from Neutral at Compass Point... Post Holdings (POST) upgraded to Buy from Neutral at SunTrust... Ralph Lauren (RL) upgraded to Buy from Neutral at UBS... Regions Financial (RF) upgraded to Buy from Hold at Sandler O'Neill... Shire (SHPG) upgraded to Hold from Reduce at HSBC... Sinopec (SNP) upgraded to Buy from Hold at Jefferies... Verifone (PAY) upgraded to Buy from Hold at Argus.
|07:03 EDT||JCI||Johnson Controls upgraded to Outperform from Market Perform at William Blair|
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