Tyco Meets Wall Street’s 1Q Profit Forecasts

The company reported revenue of $2.5 billion, a 2% increase on an organic basis.

CORK, Ireland – Tyco Int’l reported fiscal first-quarter net income of $162 million.

On a per-share basis, the company said it had net income of 38 cents. Earnings, adjusted for one-time gains and costs, came to 49 cents per share.

The results met Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was also for earnings of 49 cents per share.

Tyco, which bills itself as the world’s largest pure-play fire protection and security company, posted revenue of $2.48 billion in the period, missing Wall Street forecasts. Analysts expected $2.5 billion, according to Zacks.

In a press release, Tyco CEO George Oliver said the company is making good progress transforming its direct channel into a technology solutions provider by expanding their capabilities through organic investments and strategic acquisitions.

During the first quarter, the company launched the new Tyco On software solutions platform and completed or signed five acquisitions focused on key areas of growth, including gas and flame detection, growth markets, and expanding its services platform. 

RELATED: Tyco Broadens Wireless Fire Product Offering With CWSI Deal

“We are off to a solid start in 2015 with our sixth consecutive quarter of double digit earnings growth,” Oliver said. “Our teams continue to execute well, with exceptional organic growth of 10% from our products businesses, which drove overall organic revenue growth of 2% and contributed to the 17% increase in earnings per share, year over year.  In addition, we committed nearly $1 billion of capital to acquisitions and share repurchases.”

For the current quarter ending in March, Tyco expects its per-share earnings to range from 48 cents to 50 cents.

The company expects full-year earnings in the range of $2.30 to $2.40 per share.

Tyco shares have fallen roughly 5% since the beginning of the year, while the Standard & Poor’s 500 index has fallen almost 2%. The stock has increased 5% in the last 12 months.

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