Tyco Earnings: Reversing to a Loss Following Two Consecutive Quarters of Profit

S&P 500 (NYSE:SPY) component TYCO International Ltd. (NYSE:TYC) reported its results for the fourth quarter. Tyco International provides security products and services, fire protection and detection products and services, valves and controls and other industrial products.

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TYCO International Ltd. Earnings Cheat Sheet

Results: Reported a loss of $419 million (91 cents per diluted share) in the quarter. TYCO International Ltd. had a net income of $397 million or 84 cents per share in the year-earlier quarter.

Revenue: Fell 2.5% to $2.73 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: TYCO International Ltd. reported adjusted net income of 33 cents per share. By that measure, the company fell short of mean estimate of 36 cents per share. It fell short of the average revenue estimate of $4.22 billion.

Quoting Management: Tyco Chief Executive Officer George Oliver said, “I am very excited about the new Tyco. As the world’s largest pure play Fire & Security company, we have the opportunity to leverage our global scale and broad portfolio of products and services to deliver substantial shareholder value. Our market-leading position and breadth and depth of industry experience differentiates us from our competitors and it is these strengths that make us a leader in the $100 billion global fire and security industry. Our full year and fourth quarter results highlight our ability to continue to deliver margin expansion. Our performance this year along with a strong balance sheet and continued investments in the businesses position us well to achieve a 15% to 16% segment operating margin before special items in 2015,” Oliver added.

Key Stats:

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the third quarter, it topped the mark by 8 cents, and in the second quarter, it was ahead by 7 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 95 cents a share to 42 cents over the last sixty days. For the fiscal year, the average estimate has moved down from $3.74 a share to $1.53 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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