The 10-second takeaway
For the quarter ended March 30 (Q2), Tyco International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins shrank, operating margins grew, net margins dropped.
Tyco International booked revenue of $4.35 billion. The 12 analysts polled by S&P Capital IQ predicted a top line of $4.22 billion on the same basis. GAAP reported sales were 9.1% higher than the prior-year quarter's $3.99 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 $0.86. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.79 per share. GAAP EPS of $0.70 for Q2 were 6.1% higher than the prior-year quarter's $0.66 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 38.5%, 30 basis points worse than the prior-year quarter. Operating margin was 13.1%, 120 basis points better than the prior-year quarter. Net margin was 7.5%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.51 billion. On the bottom line, the average EPS estimate is $0.95.
Next year's average estimate for revenue is $17.81 billion. The average EPS estimate is $3.65.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 481 members out of 527 rating the stock outperform, and 46 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 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 $58.73.
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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.