Tyco Earnings: Tops Wall Street Expectations Despite Declines

Tyco International Ltd. (NYSE:TYC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.29%.

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Tyco International Ltd. Earnings Cheat Sheet

Results: Net income decreased -51.05% to $163 million (40 cents per diluted share) in the quarter versus a net gain of $333 million in the year-earlier quarter.

Revenue: Decreased 38.21% to $2.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tyco International Ltd. reported adjusted net income of 40 cents per share. By that measure, the company beat the mean analyst estimate of $0.39. It beat the average revenue estimate of $2.57 billion.

Quoting Management: Tyco CEO George Oliver said, “We’re off to a great start as the new Tyco, integrating our fire and security businesses and executing on our growth strategy. We had another very good quarter, with a 5% increase in revenue, driven partly by our acquisition strategy, and an 11% increase in earnings per share before special items on a normalized basis…

…I am especially pleased with the traction we are getting from our productivity and sourcing initiatives, and the positive impact we are seeing from our increased investments in research andĀ development. Overall, our performance in the first quarter is a solid beginning to fiscal 2013.”

Key Stats:

Revenue decreased 199.31% from $2.62 billion in the previous quarter. Net income increased to $163 million in the quarter versus a net loss of $430 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.44 to a profit $0.42. For the current year, the average estimate has moved down from a profit of $1.87 to a profit of $1.84 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)