Earnings Preview: Tyco International

Tyco International (TYC) is expected to report Q3 earnings before market open Thursday, July 31, with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for EPS of 57c on revenue of $4.94B. The consensus range is 48c to 59c for EPS, and $4.87B to $5B for revenue, according to First Call. Tyco gave guidance in February for FY08 EPS when it announced its results for Q1, the company expects FY08 EPS $2.60 to $2.70 vs. a consensus of $2.76. On May 1, Tyco International raised its FY08 EPS guidance to $2.65 to $2.75 vs consensus, at the time, of $2.67.

Tyco International announced an agreement to purchase substantially all of the assets of Sensormatic Security Corporation for approximately $81M, and a new $1B share repurchase program during July. Investors will be interested to see if the company raising its FY08 EPS guidance is an indication that Tyco will report a strong Q2.