Research on Tyco and GEO Group: Security Companies Restructure Operations
LONDON, February 25, 2013 /PRNewswire/ --
Security & Protection Services stocks have performed well last year. The sector itself looks promising and the major companies including Tyco International Ltd. (NYSE: TYC) and The GEO Group Inc. (NYSE: GEO) announced encouraging quarterly results. Their stocks have also performed well. The sector also saw major business restructuring efforts as the companies tried to streamline their businesses and boost their margins. Tyco International Ltd. spun off its businesses and created new public entities. The GEO Group Inc.,on the other hand,converted itself into a REIT company to contain its costs and improve investors' value. StockCall has posted free technical research reports on Tyco International and GEO Group and these can be accessed by signing up at
The GEO Group Inc.Goes REIT Way
The GEO Group Inc. failed to meet analysts' expectations for its fourth quarter revenue. It lagged behind consensus estimate of $415.2 million by posting its revenue at $378.7 million. However, it surpassed EPS estimates as it announced 44 cents per share in net income whereas analysts had pegged their estimates at 41 cents per share. The company stock grew 19 percent on a YTD basis and this bullish stance is likely to continue on the back of its good results and improved performance. Download the free report on Tyco International Ltd. upon registration at
The GEO Group offers mouthwatering dividend yield of 5.96 percent. No wonder, the stock is being lapped up by hedge funds including Sandell Asset Management, which holds a considerable stake in the company. Another development for the company is related to the approval for REIT status. The GEO Group Inc. reported that it received IRS approval via a private letter ruling. The company board authorized the company to assume REIT status with effect from January 1. The announcement helped the stock touch new highs. The company's new REITS status will help the company in maximizing investors' returns. The GEO Group Inc. also expects the restructuring to lower its cost of capital and increase its growth opportunities.
Tyco International Ltd. Spins off Businesses
Tyco International Ltd. carried out major reconstructing late last year. It spun-off three publicly traded units on October 1st of 2012. After spinning off these units, the company now focuses on fire protection and security services. The effects of the business restructuring have been good as the stock is up 9 percent so far this year. However, the stock also got dumped by many of its hedge fund investors. The GEO Group Inc. technical report can be accessed for free by signing up at
Tyco International Ltd. reported its first quarter revenue at $2.60 billion. It was expected to report its revenue at $2.57 billion. It also surpassed analysts' estimates for EPS as it posted 40 cents per share in income for the quarter. Analysts had pegged their estimates at 39 cents per share. For the second quarter, the company is expected to report its revenue and EPS at $2.60 billion and 42 cents per share respectively. Going by this positive trend, the company stock is also expected to remain up on its growth trajectory. The stock is already up 15 percent the past 3 months. Tyco International Ltd. is an attractive investment opportunity as the stock also offers 1.88 percent dividend yield. The company stock is expected to reap the benefits of the business restructuring.
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