The 10-second takeaway
For the quarter ended Sep. 28 (Q4), Tyco International met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Tyco International recorded revenue of $2.73 billion. The seven analysts polled by S&P Capital IQ anticipated a top line of $2.72 billion on the same basis. GAAP reported sales were 42% lower than the prior-year quarter's $4.69 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 $0.33. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.36 per share. GAAP EPS were -$0.91 for Q4 versus $0.85 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.7%, 130 basis points worse than the prior-year quarter. Operating margin was 9.2%, 200 basis points worse than the prior-year quarter. Net margin was -15.4%, 2,390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.49 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $11.77 billion. The average EPS estimate is $2.02.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 483 members out of 528 rating the stock outperform, and 45 members rating it underperform. Among 134 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 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 $45.50.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.