Earnings Preview: Tyco International

Jan.30.12 | About: Tyco International (TYC)

Tyco International (NYSE:TYC) is expected to report Q1 earnings before the market open on Tuesday, January 31 with a conference call scheduled for 8:00 am ET.

Guidance

Analysts are looking for EPS of 79c on revenue of $4.26B. The consensus range is 77c-86c for EPS, and $4.19B-$4.38B for revenue, according to First Call. Tyco reported positive Q4 results, beating EPS and revenue estimates. On its Q4 conference call, the company guided Q1 EPS and revenue numbers below analysts’ estimates. It forecast Q1 EPS about 77c vs. consensus 83c, and Q1 revenue $4.2B vs. consensus $4.51B. It also said it would make 3-4 acquisitions in the first half of 2012. Despite the weak guidance, the shares have traded modestly higher in the past several months, and currently sit about four points from their 52-week high of $53.38.

Analyst Views

On November 17, Cowen noted that Tyco’s growth story remained intact. The firm cited the firm’s improved margins, sales growth, and defensive businesses. Cowen placed an Outperform rating on the shares.