>>> Johnson Controls misses on the top line; guides Q3 EPS below consensus; guid

Johnson Controls misses on the top line; guides Q3 EPS below consensus; guides FY14 EPS below consensus (from cont ops)

Reports Q2 (Mar) earnings of $0.66 per share, excluding non-recurring items and including discontinued operations, $0.01 better than the Capital IQ Consensus Estimate of $0.65; revenues rose 3.6% year/year to $10.46 bln vs the $10.68 bln consensus. Co also reported earnings from cont ops of $0.64.

Co issues downside guidance for Q3, sees EPS of $0.81-0.84 vs. $0.86 Capital IQ Consensus Estimate.

Co issues downside guidance for FY14, sees EPS of $3.10-3.15 versus prior guidance of $3.15-3.30 vs. $3.23 Capital IQ Consensus Estimate. The Company is providing updated guidance now that Electronics is reported as a discontinued operation. Previously, the Company provided full year earnings guidance including Electronics of $3.15 - $3.30 per diluted share. Excluding Electronics earnings of ~$0.10 - $0.12 per share, the adjusted range for continuing operations would be $3.05 to $3.18 per share. The Company's updated guidance for earnings from continuing operations is now $3.10 to $3.15 per share.

Automotive Experience segment income (excluding discontinued operations) of $241 million was up 226% compared to $74 million in the second quarter of 2013.

The 2013 results exclude an $82 million non-recurring equity income gain. The increase was primarily led by improvements in the company's Seating business, with segment income of $236 million in the current quarter, compared with $94 million last year.

The Company also reaffirmed its full fiscal year guidance for free cash flow of $1.6 billion and segment margin improvements in all three of its businesses. The updated guidance assumes that underlying earnings from the recently announced Air Distribution Technologies acquisition are neutral in 2014.