2 Stocks Dipping Lower Following Earnings Releases

Johnson Controls Inc. (NYSE:JCI) reported its results for the first quarter. Net income for Johnson Controls Inc. rose to $410 million (60 cents per share) vs. $375 million (55 cents per share) in the same quarter a year earlier. This marks a rise of 9% from the year earlier quarter. Revenue rose 10% to $10.42 billion from the year earlier quarter. JCI fell short of the mean analyst estimate of 62 cents per share. Analysts were expecting revenue of $10.52 billion.

“Our first quarter results were in line with the expectations we announced at the beginning of the year. The automotive and buildings markets were stable in the quarter and we benefitted from our record backlogs in both businesses,” said Stephen A. Roell, Johnson Controls Chairman and Chief Executive Officer.

“Automotive Experience revenues grew at a double-digit pace across all geographic regions and Building Efficiency commercial revenues and backlog were higher in a challenged global market. Power Solutions improved sales and income despite the soft demand for aftermarket batteries resulting from unseasonably warm winter temperatures globally.” Mr. Roell added, “Our growth in the first quarter is evidence of continued market share gains as we sustainably outperform our underlying industries. We took steps to improve our execution and added resources to improve quality and productivity. At the same time, we continued to invest in order to support our global growth and margin expansion opportunities.”

Competitors to Watch: Lear Corporation (NYSE:LEA), Visteon Corporation (NYSE:VC), Gentex Corporation (NASDAQ:GNTX), Motorcar Parts of America, Inc. (NASDAQ:MPAA), United Technologies Corp. (NYSE:UTX), Honeywell Intl. Inc. (NYSE:HON), Commercial Vehicle Group, Inc. (NASDAQ:CVGI), Modine Manufacturing Co. (NYSE:MOD), Stoneridge, Inc. (NYSE:SRI), and Strattec Security Corp. (NASDAQ:STRT).

Rockwell Collins Inc. (NYSE:COL) reported its results for the first quarter. Net income for Rockwell Collins Inc. fell to $130 million (86 cents per share) vs. $151 million (96 cents per share) a year earlier. This is a decline of 13.9% from the year earlier quarter. Revenue fell 1.4% to $1.09 billion from the year earlier quarter. COL fell in line with the mean analyst estimate of 86 cents per share. Analysts were expecting revenue of $1.09 billion.

“First quarter sales were in-line with our expectations as continued growth in Commercial Systems nearly offset the decline in Government Systems,” said Rockwell Collins Chairman, President and Chief Executive Officer, Clay Jones. “Our focus on improved operating performance enabled Government Systems to maintain 20% operating margins despite a 10% decline in sales, while Commercial Systems margins expanded by 170 basis points. This resulted in an increase to total segment operating earnings even as sales declined modestly. Additionally, we exercised some of our balance sheet flexibility this quarter through more aggressive share repurchases, which reduced the outstanding share count by more than 4%, returning significant value to our shareowners.”

Competitors to Watch: The Boeing Company (NYSE:BA), Honeywell Intl. Inc. (NYSE:HON), BAE Systems PLC (BAESY), General Dynamics Corp. (NYSE:GD), Elbit Systems Ltd. (NASDAQ:ESLT), L-3 Communications Hldgs., Inc. (NYSE:LLL), Northrop Grumman Corp. (NYSE:NOC), Raytheon Company (NYSE:RTN), LMI Aerospace, Inc. (NASDAQ:LMIA), and Innovative Solutions & Support Inc (NASDAQ:ISSC).