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Tyco (TYC) Q2 Earnings In-line, Misses on Revenues

With operations in more than 900 locations across 50 countries serving diversified end markets, Tyco International Ltd. TYC is the world's largest pure-play fire protection and security firm. The company fills an incredibly wide range of needs for businesses, governments, commercial industries, educational and medical institutions, with a portfolio of leading brand names for products and services under all its operating segments.

However, TYC’s business strategy hinges on acquiring complementary companies that consume significant resources and entail huge integration costs. In the last four trailing quarters, TYC has managed to beat the earnings all four times with a positive average earnings surprise of 4.45%.

Currently, TYC has a Zacks Rank #3 (Hold), but that could definitely change following the second-quarter fiscal 2016 earnings report, which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Earnings were in-line with estimate. The company reported adjusted EPS (from continuing operations) of 45 cents, which was in-line with the Zacks Consensus Estimate.

Revenue: Revenue misses marginally. TYC posted total revenue of $2,331 million, slightly lower than the Zacks Consensus Estimate of $2,335 million.

Key Stats to Note: During the quarter, the company completed the acquisition of ShopperTrak for approximately $175 million. The planned merging deal with Johnson Controls is expected to reinforce the company’s commercial prosperity in the quarters ahead.

Stock Price: Shares remained unchanged in the pre-market trading following the release at the time of this write-up.

Check back our full write up on this TYC earnings report later!

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