The 10-second takeaway
For the quarter ended June 29 (Q3), Tyco International missed slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins dropped, and net margins dropped.
Tyco International logged revenue of $4.46 billion. The 10 analysts polled by S&P Capital IQ predicted sales of $4.54 billion on the same basis. GAAP reported sales were 3.9% higher than the prior-year quarter's $4.29 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 $1.01. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. GAAP EPS of $0.52 for Q3 were 31% lower than the prior-year quarter's $0.75 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 39.6%, 110 basis points better than the prior-year quarter. Operating margin was 10.6%, 150 basis points worse than the prior-year quarter. Net margin was 5.4%, 300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.91 billion. On the bottom line, the average EPS estimate is $1.05.
Next year's average estimate for revenue is $17.96 billion. The average EPS estimate is $3.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 483 members out of 530 rating the stock outperform, and 47 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 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 $61.62.
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