With operations in more than 900 locations across 50 countries serving diversified end markets, Tyco International Ltd. (TYC) is the world's largest pure-play fire protection and security firm. The company fills an incredibly wide range of needs for businesses, governments, commercial industries, educational and medical institutions, with a portfolio of leading brand names for products and services under all its operating segments.
However, TYC’s business strategy hinges on acquiring complementary companies that consume significant resources and entail huge integration costs. In the last four trailing quarters, TYC has managed to beat the earnings only once with a positive average earnings surprise of 2.5%.
Currently, TYC has a Zacks Rank #4 (Sell), but that could definitely change following the company’s earnings report, which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: TYC beat on earnings. The Zacks Consensus Estimate called for EPS of 56 cents, while the company reported EPS (from continuing operations) of 59 cents.
Revenue: Total revenues missed. TYC posted total revenue of $2,489 million, compared with Zacks Consensus Estimate of $2,537 million.
Key Stats to Note: TYC completed the acquisition of FootFall – a global retail intelligence leader for approximately $60 million in cash. The addition of this business to Tyco's operations is likely to be accretive to future earnings.
Stock Price: Shares remained flat in pre-market trading following the release at the time of this write-up.
Check back our full write up on this TYC earnings report later!
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