NEW YORK (TheStreet) -- Shares of Tyco International (TYC) were down 0.37% to $43.23 in morning trading Wednesday ahead of the company's scheduled fourth-quarter earnings report before the market open Thursday. Here's what analysts are expecting from the Swiss security systems company.
The consensus estimate calls for earnings of 56 cents a share on revenue of $2.72 billion. In the fourth quarter last year, the company reported earnings of 52 cents a share, which matched the consensus estimate of analysts polled by Thomson Reuters. Revenue totaled $2.76 billion, which edged analysts' expectations of $2.74 billion.
In the third quarter this year, earnings totaled 54 cents a share, which matched analysts' expectations. Revenue totaled $2.66 billion, which edged the consensus estimate of $2.65 billion.
Separately, TheStreet Ratings team rates TYCO INTERNATIONAL LTD as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TYCO INTERNATIONAL LTD (TYC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- TYCO INTERNATIONAL LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, TYCO INTERNATIONAL LTD turned its bottom line around by earning $0.99 versus -$0.72 in the prior year. This year, the market expects an improvement in earnings ($1.99 versus $0.99).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 974.1% when compared to the same quarter one year prior, rising from $135.00 million to $1,450.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 4.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TYC's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems.
- You can view the full analysis from the report here: TYC Ratings Report