Total System Services Earnings: A Mixed Bag

Total System Services, Inc. (NYSE:TSS) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation.

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Total System Services, Inc. Earnings Cheat Sheet

Results: Net income increased 1.54% to $60.8 million (33 cents per diluted share) in the quarter versus a net gain of $59.88 million in the year-earlier quarter.

Revenue: Rose 1.45% to $479.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Total System Services, Inc. reported adjusted net income of 33 cents per share. By that measure, the company met the mean analyst estimate of $0.33. It missed the average revenue estimate of $485.49 million.

Quoting Management: “We are pleased to report that we exceeded the high end of our net income and EPS guidance for 2012. These results reflect continued strong same client transaction growth of 12.0% in our card issuer processing business. Point-Of-Sale transactions, excluding deconverted clients in the indirect merchant business, were up 9.9% and sales volume in the direct merchant business was up 12.9%…

…Excluding the impact of acquisitions, sales volume was up 3.2%. Also contributing to our strong results was our consolidated internal revenue growth of 5.1% for the year, combined with acquisitions in the acquiring space, which added 1.8% to our growth in revenues before reimbursable items,” said Philip W. Tomlinson, chairman and chief executive officer of TSYS.

Key Stats:

Revenue increased 2.36% from $468.06 million in the previous quarter. Net income increased 0.81% from $60.31 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.34 and has not changed. For the current year, the average estimate is a profit of $1.29, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)