Tyco International Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Tyco International (NYSE:TYC) will unveil its latest earnings on Wednesday, November 14, 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 estimate of analysts is for net income of 34 cents per share, a decline of 63% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.04. Between one and three months ago, the average estimate moved down. It also has dropped from 35 cents during the last month. Analysts are projecting profit to rise by 53.1% compared to last year’s $1.52.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 8 cents, reporting profit of $1.01 per share against a mean estimate of net income of 93 cents per share.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Stock Price Performance: Between August 15, 2012 and November 8, 2012, the stock price fell $29.05 (-51.3%), from $56.65 to $27.60. The stock price saw one of its best stretches over the last year between June 1, 2012 and June 8, 2012, when shares rose for six straight days, increasing 3.9% (+$2.01) 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: Analysts are projecting a decline of 42% in revenue from the year-earlier quarter to $2.72 billion.

A Look Back: In the third quarter, profit fell 32.6% to $242 million (51 cents a share) from $359 million (76 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 3.9% to $4.46 billion from $4.29 billion.

Key Stats:

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 3.8% in the second quarter before dropping in the third quarter.

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 9.1% in the second quarter before climbing again in the third quarter.

Analyst Ratings: There are seven out of 11 analysts surveyed (63.6%) rating Tyco International a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.53 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 improved this liquidity measure from 1.51 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 2.8% to $6.65 billion while liabilities rose by 1.1% to $4.33 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Is This Airline Flying High Enough to Buy?

Here’s How Ford Will Dethrone Toyota

Is Apple Still the Top Innovator?