Tyco International Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Tyco International (NYSE:TYC) will unveil its latest earnings on Tuesday, July 31, 2012. Tyco International provides security products and services, fire protection and detection products and services, valves and controls and other industrial products.

Tyco International Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 93 cents per share, a rise of 9.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 95 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 93 cents during the last month. Analysts are projecting profit to rise by 13.6% compared to last year’s $3.68.

Past Earnings Performance: Last quarter, the company beat estimates by 7 cents, coming in at net income of 86 cents a share versus the estimate of profit of 79 cents a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between April 30, 2012 and July 25, 2012, the stock price fell $4.46 (-7.9%), from $56.13 to $51.67. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 12, 2011, when shares rose for eight straight days, increasing 12.9% (+$5.07) over that span. It saw one of its worst periods between April 27, 2012 and May 8, 2012 when shares fell for eight straight days, dropping 4.9% (-$2.82) over that span.

Wall St. Revenue Expectations: On average, analysts predict $4.54 billion in revenue this quarter, a rise of 5.8% from the year-ago quarter. Analysts are forecasting total revenue of $17.99 billion for the year, a rise of 3.6% from last year’s revenue of $17.36 billion.

A Look Back: In the second quarter, profit rose 3.8% to $327 million (70 cents a share) from $315 million (66 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 9.1% to $4.35 billion from $3.99 billion.

Key Stats:

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 11.5% for the last four quarters.

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 3.9% in the first quarter after increasing in the second quarter.

Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.51 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.54 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.6% to $4.29 billion while assets rose 5.3% to $6.46 billion.

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

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