Security products and services company Tyco International Ltd. (TYC) said Tuesday that its fourth-quarter profit plunged 53% from last year, but results were still enough to beat analyst expectations.
The Swiss-based company reported fourth-quarter net income of $205 million, or 43 cents per share, down from $434 million, or 91 cents per share, in the same quarter last year. Excluding one-time items, adjusted profit was 61 cents per share.
Revenue fell 16% from last year, to $4.42 billion.
On average, Wall Street analysts expected a lower profit of 52 cents per share, on smaller revenue of $4.3 billion.
CEO Ed Breen said in a statement that "Our operating results for the fourth quarter reflect good progress in reducing our overall cost structure while we continue to invest in the future growth of our businesses."
Tyco International shares rose 26 cents, or +0.7%, in premarket trading Tuesday.
The Bottom Line
We have been avoiding shares of TYC since our early June coverage began last year, when the stock was trading at $44.01. The company has a 1.98% dividend yield, based on last night’s closing stock price of $35.39. The stock has technical support in the $30 price area.
If the shares can continue its recent move higher, we see overhead resistance around the $38-$40 price levels. We would remain on the sidelines for now.
Tyco International Ltd. (TYC) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
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