Will Tyco's (TYC) Q3 Earnings Disappoint On Macro Woes?
Zacks Investment Research | Jul 28, 2016 07:30AM ET
Security and protection services provider Tyco International Ltd. (NYSE:TYC) is scheduled to report third-quarter fiscal 2016 results before the opening bell on Jul 29. In the last reported quarter, earnings matched with the Zacks Consensus Estimate. Tyco has a modest earnings surprise history, beating earnings estimates twice in the trailing four quarters with an average positive earnings surprise of 1.95%.
Let’s see how things are shaping up for this announcement.
Key Factors in the Third Quarter
Tyco’s merger with global diversified technology firm Johnson Controls (NYSE:JCI) is currently on track and is expected to be completed by Sep 2, 2016. Per the deal, Tyco will own 44% equity in the joint company. Post merger, the companies plan to strengthen their building products and technology, integrated solutions and energy storage portfolios. Tyco believes that this acquisition will help it to expand its global footprint in the building-technology market, enhance shareholder value and launch innovative solutions. Although the transaction is not likely to make any significant contribution in the to-be-reported quarter, its role in attracting potential revenue contribution from other clients is irrefutable.
Tyco is repositioning its portfolio to ensure the right mix of businesses and maximize long-term value for its shareholders. At the same time, Tyco is building on its Internet of Things capabilities with proven expertise in its Installation and Services businesses. It has installed more than one billion fire security and retail sensors and devices globally. These capabilities enable Tyco to offer new intelligent services for customers ranging from Fortune 500 companies to small businesses.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.