Bank of America Merrill Lynch Lowers EPS Estimates on Tyco International (TYC)

Bank of America Merrill Lynch is out with its report today on Tyco International TYC, lowering its EPS estimates. In a note to clients, Bank of America Merrill Lynch writes, "We are cutting our FY11 operating EPS estimate from $3.20 to $3.10 (3 cents above the high end of the guidance range). For FY12, we are reducing our EPS estimate by 5 cents – from $3.75 to $3.70. Our FY12 EPS estimate continues to include forecast restructuring expense of ~$0.10 whereas the FY11 presentation of EPS still excludes special items (eg, restructuring). We think it is likely Tyco will prospectively include future restructuring expense, given that activity should reportedly moderate to under $100mm per year (vs. ~$200mm in FY11) – this presentation of earnings would be consistent with peers." Bank of America Merrill Lynch maintains Neutral on TYC. Shares of TYC closed Friday at $48.76, down 0.14% from Thursday's close.