The 10-second takeaway
For the quarter ended Dec. 30 (Q1), Tyco International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins improved, net margins contracted.
Tyco International booked revenue of $4.21 billion. The 12 analysts polled by S&P Capital IQ expected a top line of $4.27 billion. Sales were 3.9% lower than the prior-year quarter's $4.38 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.84. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.79 per share on the same basis. GAAP EPS of $0.71 for Q1 were 47% lower than the prior-year quarter's $1.34 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 39.5%, 230 basis points better than the prior-year quarter. Operating margin was 12.9%, 170 basis points better than the prior-year quarter. Net margin was 7.9%, 710 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.21 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $17.82 billion. The average EPS estimate is $3.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 486 members out of 532 rating the stock outperform, and 46 members rating it underperform. Among 133 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 128 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 $52.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.