TYCO International Ltd. Earnings: The Streak is Broken

Wall St. Cheat Sheet

S&P 500 component TYCO International Ltd. reported its results for the first quarter. Tyco International provides security products and services, fire protection and detection products and services, valves and controls and other industrial products.

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TYCO International Earnings Cheat Sheet for the First Quarter

Results: Net income for the diversified machinery company fell to $333 million (71 cents per share) vs. $490 million ($1 per share) a year earlier. This is a decline of 32% from the year earlier quarter.

Revenue: Fell 3.9% to $4.21 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: TYC reported adjusted net income of 84 cents per share. By that measure, the company beat the mean estimate of 79 cents per share. Analysts were expecting revenue of $4.26 billion.

Quoting Management: Tyco Chairman and Chief Executive Officer Ed Breen said, “We delivered a strong quarter operationally with continued organic revenue growth supported by improving order activity. The year over year improvement in our operating margin reflects increased volume in our product businesses, a higher mix of service revenue and the benefits of our cost containment and restructuring actions. This helped us deliver another quarter of double digit increases in earnings per share.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the fourth quarter of the last fiscal year, by 13 cents in the third quarter of the last fiscal year, and by 5 cents in the second quarter of the last fiscal year.

A year-over-year revenue decrease last quarter snaps a streak of two consecutive quarters of revenue increases. Revenue rose 4.4% in the fourth quarter of the last fiscal year and 0.4% in the third quarter of the last fiscal year.

Looking Forward: Expectations for the second quarter have not changed from 82 cents. In the past month, the average estimate for the fiscal year has fallen from $3.65 per share to $3.62 abs.

Competitors to Watch: Honeywell Intl. Inc. , 3M Company , General Electric Company , China Security & Surveillance Tech. Inc. , Checkpoint Systems, Inc. , Magal Security Systems Ltd. , Mace Security Intl., Inc. , Textron Inc. , and Napco Security Systems .

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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