The 10-second takeaway
For the quarter ended Dec. 28 (Q1), Tyco International beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Tyco International chalked up revenue of $2.60 billion. The 10 analysts polled by S&P Capital IQ expected to see a top line of $2.57 billion on the same basis. GAAP reported sales were 38% lower than the prior-year quarter's $4.21 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.40. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. GAAP EPS of $0.35 for Q1 were 51% lower than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.8%, 370 basis points worse than the prior-year quarter. Operating margin was 9.6%, 340 basis points worse than the prior-year quarter. Net margin was 6.3%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.60 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $10.69 billion. The average EPS estimate is $1.83.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 485 members out of 530 rating the stock outperform, and 45 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 give Tyco International a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tyco International is outperform, with an average price target of $30.83.
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