Seeking Alpha: Faith In Johnson Controls May Be Running Ahead Of Facts

While I understand that Wall Street is a discounting mechanism that looks forward more often than backward, I have a hard time reconciling the confidence that investors have shown in Johnson Controls (JCI) over the past three months with the likely trajectory of performance.

Johnson Controls said many of the right things at its recent analyst day, addressing issues like margin challenges in the automotive and building systems businesses and pointing to a promising future in batteries, but it seems like analysts are much too willing to reward the company with unprecedented operating improvements. A slight beat for the fiscal first quarter is certainly better than another miss, but back-loaded guidance and iffy auto margins leave me hanging on to some skepticism.

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Faith In Johnson Controls May Be Running Ahead Of Facts