Tyco Q3 Earnings Beat Estimates, Revenues Down
Tyco posted earnings of 59 cents per share on revenue of $2.49 billion for the quarter ended June 26.
NEW YORK – Tyco Int’l (NASDAQ: TYC) reported fiscal 2015 third quarter earnings per share today (July 31) that surpassed estimates, as revenue fell short of expectations.
The fire protection and security company posted earnings of 59 cents per share on revenue of $2.49 billion for the quarter ended June 26. Analysts had estimated earnings of 56 cents per share on revenue of $2.52 billion for the third quarter of fiscal 2015.
Last year, the company reported earnings of 54 cents per share on revenue of $2.66 billion for the third quarter of fiscal 2014.
The company’s revenue was hurt by its global businesses, which were affected by unfavorable foreign currency exchange rates. Additionally, the company expects restructuring efforts and other initiatives to lead to a 12% to 13% growth in earnings for fiscal 2015, CEO George Oliver said in a statement.
Revenues for Tyco’s North America Systems Installation & Services unit were $972 million versus $968 million in the prior year as organic growth was partially offset by a weak Canadian dollar. Segment organic growth of 1% was driven by growth in installation revenue, while service revenue was relatively flat.
“While we were disappointed with our top-line growth, we once again demonstrated our ability to leverage and accelerate internal productivity and cost containment initiatives to deliver on our earnings commitment for the quarter,” Oliver said. “We produced strong margin expansion of 90 basis points, driven by an improvement in fundamentals in our North America Installation & Services business. That, combined with additional restructuring actions, position us well to achieve 12% to 13% EPS growth for the year.”
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