On Nov. 15, services and manufacturing conglomerate Tyco International (NYSE:TYC) released Q4 2006 earnings for the period ended Sept. 29.
- Net profits include $0.12 per share of net pro forma gains, if you want to compare results with analyst forecasts on an apples-to-apples basis. Items include legal settlements, tax gains, and various restructuring charges.
- Free cash flow grew faster than sales but slower than earnings. It's not ideal, but you gotta start somewhere.
- Most of your fellow Fools seem to like Tyco, according to our CAPS community. The three-star stock rates 100 bullish ratings vs. 15 bears, and our all-star players are unanimously in favor with 25 outperforms. Add your own insights here.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$10,540 |
$10,760 |
$9,935 |
8.3% |
|
Net Profit* |
-- |
$1,287 |
$867 |
48.4% |
|
EPS* |
$0.49 |
$0.63 |
$0.41 |
53.7% |
|
Diluted Shares |
2043 |
2127 |
(3.9%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
33.38% |
34.02% |
(0.64) |
|
Operating Margin |
14.01% |
10.49% |
3.52 |
|
Net Margin |
11.96% |
8.73% |
3.23 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,926 |
$3,212 |
(8.9%) |
|
Accounts Rec. |
$7,064 |
$6,657 |
6.1% |
|
Inventory |
$4,794 |
$4,144 |
15.7% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$3,527 |
$3,019 |
16.8% |
|
Long-Term Debt* |
$10,173 |
$12,529 |
(18.8%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$2,402.0 |
$2,110.0 |
13.8% |
|
Capital Expenditures |
$451.0 |
$380.0 |
18.7% |
|
Free Cash Flow |
$1,951.0 |
$1,730.0 |
12.8% |
Find out why Fools always follow the money.
Cash Conversion Checkup
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Days in Inventory |
60.4 |
59.8 |
0.6 |
|
Days in Receivables |
59.0 |
62.6 |
(3.6) |
|
Days Payables Outstanding |
42.8 |
40.9 |
1.8 |
|
Cash Conversion Cycle |
76.6 |
81.4 |
(4.8) |
Read up on cash conversion metrics.
Related Companies:
- TTM Technologies (NASDAQ:TTMI)
- Johnson & Johnson (NYSE:JNJ)
- General Electric (NYSE:GE)
- Koninklijke Philips (NYSE:PHG)
- Honeywell International (NYSE:HON)
- Corning (NYSE:GLW)
Related Foolishness:
Tyco is a Motley Fool Inside Value pick.Inside Value gives subscribers the big names with the best prospects for good returns. A free trial gives you all the picks and how they're doing.TTM Technologies is aStock Advisorselection.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here.
