Last updated on April 18, 2014 at 8:42 EDT

Research on Tyco and GEO Group: Security Companies Restructure Operations

February 25, 2013

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

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.

About StockCall.com

StockCall.com is a financial website where investors can have easy, precise and
comprehensive research and opinions on stocks making the headlines. Sign up today to talk
to our financial analyst at


SOURCE StockCall.com

Source: PR Newswire