NEW YORK (TheStreet) -- Tyco International (TYC) shares are up 0.43% to $36.95 in afternoon trading on Thursday ahead of the release of the security system company's third quarter financial results before the market opens tomorrow. 

The Ireland-based company is expected to report earnings of 56 cents per share on revenue of $2.5 billion.

The company met analysts' expectations in the year ago period when it reported earnings of 54 cents per share on revenue of $2.7 billion.

The company previously lowered its earnings guidance for the year to between $2.23 and $2.27 per share from its previous view between $2.30 and $2.40 per share.

For the fourth quarter the company expects to earn between 55 cents and 57 cents per share.

TheStreet Ratings team rates TYCO INTERNATIONAL PLC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate TYCO INTERNATIONAL PLC (TYC) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • TYCO INTERNATIONAL PLC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TYCO INTERNATIONAL PLC increased its bottom line by earning $1.69 versus $0.94 in the prior year. This year, the market expects an improvement in earnings ($2.23 versus $1.69).
  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that TYC's debt-to-equity ratio is low, the quick ratio, which is currently 0.62, displays a potential problem in covering short-term cash needs.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Commercial Services & Supplies industry average. The net income has decreased by 19.3% when compared to the same quarter one year ago, dropping from $207.00 million to $167.00 million.
  • Net operating cash flow has decreased to $169.00 million or 47.18% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: TYC Ratings Report