Earnings Preview: Tyco International

Apr.27.11 | About: Tyco International (TYC)

Tyco International (NYSE:TYC) is expected to report Q2 earnings before the market open on Thursday, April 28 with a conference call scheduled for 8:00 am ET.


Analysts are looking for EPS of 68c on revenue of $3.99B. The consensus range is 66c-72c for EPS, and $3.94B-$4.08B for revenue, according to First Call. Tyco reported positive Q1 results, beating EPS and revenue estimates. There has been recent speculation that the company could be acquired by French firm Schneider Electric for as much as $30B. Due to the buyout talk, the shares have advanced, hitting a 52-week high of $53.38 earlier this month. Sentiment on the street has been positive surrounding the takeover talks, with several firms placing a premium on Tyco’s shares.

Analyst Views

On April 12, FBR Capital noted that Tyco could be worth more than $67 a share in an acquisition, while Deutsche Bank said the shares were not pricing in a strategic premium. They raised their target to $55 from $50. The stock is up only modestly since the buyout rumors began several weeks ago. However, it has risen approximately 30% this year and currently sits about 10% from its three year high.