So JPMorgan has forecast EPS of $3.20 for Sept 2013? Their crystal ball must be entirely smog-free in that case. I looked at the S&P report on JCI, issued very recently. They don't yet show a forecast for Sept '13 EPS, they only have a Sept '12 forecast of $2.78 - they had a prior estimate of $3.03. But back in October, JCI's management predicted 2012 EPS of 2.85 - 3.00, so clearly all the analysts had to take their numbers down in the wake of last week's report.
At $31, the P/E is 11.15 on an EPS of $2.78 for Sept 2012. Dividend coverage is decent, since annual dividend is only 72 cents. (so, 25.8% of earnings per share). It's possible that Sept-12 EPS numbers may be revised down one more time, so that may give investors an opportunity to buy shares at $30 or below. But barring any more surprises, the current multiple seems fair to me. S&P report shows that the lowest the P/E multiple has been is about 11.x in 2008.
I'm curious - does anyone other than JPMorgan have an estimate for FY Sept'13 EPS? How and why did they forecast $3.20 for 2013?
You bang in line. Buy under $30, that's their view. You'll find some answers to your your questions in JCI's conf call. It has always amazed me to see the expected auto margins way out of synch at JCI vs the comps that I highlighted last year.
JCI is no longer expensive, so end of this thread for me here and thanks to the half-witted on this board.