Tyco International First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Tyco International (NYSE:TYC) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. 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 39 cents per share, a decline of 53.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 42 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 39 cents during the last month. For the year, analysts are projecting net income of $1.83 per share, a rise of 35.6% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 3 cents, coming in at profit of 33 cents per share versus a mean estimate of net income of 36 cents per share. In the third quarter of the last fiscal year, the company beat estimates by 8 cents.

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A Look Back: In the fourth quarter of the last fiscal year, the company swung to a loss of $430 million (90 cents a share) from a profit of $400 million (85 cents) a year earlier, missing analyst expectations. Revenue fell 44.2% from $4.69 billion.

Here’s how Tyco International traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

tyc

Wall St. Revenue Expectations: Analysts are projecting a decline of 39% in revenue from the year-earlier quarter to $2.57 billion.

Stock Price Performance: Between October 25, 2012 and January 23, 2013, the stock price rose $4.32 (16.1%), from $26.78 to $31.10. The stock price saw one of its best stretches over the last year between November 15, 2012 and November 26, 2012, when shares rose for seven straight days, increasing 4.4% (+$1.17) over that span. It saw one of its worst periods between November 6, 2012 and November 15, 2012 when shares fell for eight straight days, dropping 7.2% (-$2.05) over that span.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 3.9% in the third quarter of the last fiscal year and 9.1% in the second quarter of the last fiscal year before falling in the fourth quarter of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.4 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.

Analyst Ratings: There are six out of 11 analysts surveyed (54.5%) rating Tyco International a buy.

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