The 10-second takeaway
For the quarter ended March 29 (Q2), Tyco International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Tyco International notched revenue of $2.61 billion. The 11 analysts polled by S&P Capital IQ predicted revenue of $2.59 billion on the same basis. GAAP reported sales were 40% lower than the prior-year quarter's $4.35 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 $0.42. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.39 per share. Non-GAAP EPS of $0.42 for Q2 were 51% lower than the prior-year quarter's $0.86 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.15 for Q2 were 79% lower than the prior-year quarter's $0.70 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.9%, 260 basis points worse than the prior-year quarter. Operating margin was 5.6%, 770 basis points worse than the prior-year quarter. Net margin was 2.8%, 470 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.73 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $10.73 billion. The average EPS estimate is $1.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 485 members out of 531 rating the stock outperform, and 46 members rating it underperform. Among 151 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 145 give Tyco International a green thumbs-up, and six 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 $32.64.
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