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Tyco International Fourth Quarter Earnings Preview
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TYC
When Tyco International (NYSE:TYC) releases its fourth quarter earnings on Wednesday, November 14, 2012, analysts are expecting a 63% drop in earnings from a year ago. The consensus estimate is 34 cents per share, down from earnings of 92 cents per share a year ago.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Surprising Earnings Results
What to Expect: Whereas the consensus estimate was $1.04 three months ago, it has since fallen. Analysts are expecting earnings of $1.52 per share for the fiscal year.
Revenue for the quarter is expected to be $2.72 billion, short of last year's reported figure of $4.69 billion by 42%. For the fiscal year, expected revenue is $10.42 billion.
Company Performance: Revenue has risen by an average 3.4% year-over-year in the last four quarters. The most significant increase took place in the second quarter, when it rose 9.1% from the year-earlier quarter.
The company has been profitable for the last eight quarters, but income has been falling for the last four by an average of 7% year-over-year.
TYC's P/E ratio is 10.0. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: The P/E Ratio: A Good Market-Timing Indicator
The stock price has fallen 51.3% since August 13, 2012, from $56.73 to $27.60. Tyco's worst recent stretch was when its stock price fell $27.76 per share between September 28, 2012 and October 1, 2012.
The Competition: Tyco International provides security products and services, fire protection and detection products and services, valves and controls and other industrial products. Seven of 11 analysts give Tyco a buy rating. In the last three months, the number of buy ratings has increased slightly.
The company's closest competitor in the conglomerates industry is Textron (TXT). Analysts are less optimistic about Tyco than about Textron. Nine out of 12 analysts rate the latter a buy.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Surprising Earnings Results
What to Expect: Whereas the consensus estimate was $1.04 three months ago, it has since fallen. Analysts are expecting earnings of $1.52 per share for the fiscal year.
Revenue for the quarter is expected to be $2.72 billion, short of last year's reported figure of $4.69 billion by 42%. For the fiscal year, expected revenue is $10.42 billion.
Company Performance: Revenue has risen by an average 3.4% year-over-year in the last four quarters. The most significant increase took place in the second quarter, when it rose 9.1% from the year-earlier quarter.
The company has been profitable for the last eight quarters, but income has been falling for the last four by an average of 7% year-over-year.
The stock price has fallen 51.3% since August 13, 2012, from $56.73 to $27.60. Tyco's worst recent stretch was when its stock price fell $27.76 per share between September 28, 2012 and October 1, 2012.
The Competition: Tyco International provides security products and services, fire protection and detection products and services, valves and controls and other industrial products. Seven of 11 analysts give Tyco a buy rating. In the last three months, the number of buy ratings has increased slightly.
The company's closest competitor in the conglomerates industry is Textron (TXT). Analysts are less optimistic about Tyco than about Textron. Nine out of 12 analysts rate the latter a buy.
by
Investopedia Staff
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