Tyco beats by $0.04, reports revs in-line; on track for 15% EPS CAGR tgt through 2015
Reports Q2 (Mar) earnings of $0.45 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.41; revenues rose 0.5% year/year to $2.49 bln vs the $2.5 bln consensus.
- Organic revenue grew 2% in the quarter, with 1.5% growth in service, 1% growth in installation and 2% growth in products. Acquisitions contributed two percentage points of growth, which was more than offset by the impact of divestitures and changes in foreign currency exchange rates.
- "We had another strong performance in the second quarter, demonstrating our ongoing effectiveness at executing on our growth strategy and operational improvement initiatives. We are starting to see an uplift in the top line, as continued growth in service and products revenue is now being supplemented with growth in installation revenue. "Looking forward, the announced divestiture of our ADT Korea business and the sale of our remaining interest in Atkore provide an opportunity to redeploy significant capital to maximize long-term shareholder value. At the halfway point in our three year growth strategy outlined at our 2012 Investor Day, we are well positioned to deliver on our 15% EPS CAGR target through 2015."