Total System Services Earnings: Here’s Why the Stock is Up Now

Total System Services, Inc. (NYSE:TSS) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.41%.

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Total System Services, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.33% to $0.31 in the quarter versus EPS of $0.30 in the year-earlier quarter.

Revenue: Rose 40.3% to $646.99 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Total System Services, Inc. reported adjusted EPS income of $0.31 per share. By that measure, the company missed the mean analyst estimate of $0.34. It beat the average revenue estimate of $478.8 million.

Quoting Management: “Our issuer processing business had strong same client transaction growth of 8.7% in the quarter. Excluding deconverted clients in the indirect merchant business, point-of-sale transactions increased 6.6% and sales volume in the direct merchant business was up 15.5%, including acquisitions. Also contributing to our strong results was our consolidated internal revenue growth of 3.9%, excluding the Bank of America Merchant Services de-conversion, combined with acquisitions in the acquiring space, which added 4.4% to our growth in revenues before reimbursable items,” said Philip W. Tomlinson, chairman and chief executive officer of TSYS.

Key Stats (on next page)…

Revenue increased 35.04% from $479.1 million in the previous quarter. EPS decreased 3.13% from $0.32 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 $0.36 and has not changed. For the current year, the average estimate has moved up from a profit of $1.45 to a profit of $1.46 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)