Total System Services: What Should Investors Do Now?

With shares of Total System Services (NYSE:TSS) trading at around $23.33, is TSS an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement


Total System Services reported Q4 revenue of $479.1 million, which was in-line with expectations. Q4 EPS came in at $0.32, which missed expectations by a penny. Gross margins increased to 34.1 percent. Operating margins decreased to 18.7 percent. Net margins remained steady at 12.7 percent.

For next quarter, the average estimate for revenue is $480.8 million. The average EPS estimate is $0.34. For the year, the average revenue estimate is $1.98 billion. The average EPS estimate is $1.44.

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On the positive side, Total System Services has shown growth. It certainly hasn’t been fast growth, but sometimes slow growth is best because the odds of sustainability increase. Total System Services also currently yields 1.70 percent. Once again, this isn’t overly impressive, but it’s not going to hurt, either. Another positive is a slight increase in cash flow. On the other hand, expenses have risen.

Let’s take a look at some important numbers for Total System Services.