Total System Services Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Total System Services, Inc. (NYSE:TSS) will unveil its latest earnings tomorrow, Tuesday, January 22, 2013. Total System Services is a payment solutions provider company. The company offers electronic payment processing, merchant services and related services to financial and non-financial institutions globally.

Total System Services, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 33 cents per share, a rise of 6.5% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 12.2% versus last year to $1.29.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 3 cents in the second quarter, the company fell in line with expectations by reporting net income of 32 cents per share last quarter.

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.12 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

A Look Back: In the third quarter, profit rose 3.7% to $60.3 million (32 cents a share) from $58.1 million (30 cents a share) the year earlier, meeting analyst expectations. Revenue rose 1.8% to $468.1 million from $459.7 million.

Here’s how Total System Services traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

TSS

Wall St. Revenue Expectations: Analysts are projecting a rise of 2.8% in revenue from the year-earlier quarter to $485.3 million.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 15.6% in the first quarter and 24.1% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.3% in the fourth quarter of the last fiscal year, 7.4% in the first quarter and 3.4% in the second quarter before increasing again in the third quarter.

Analyst Ratings: There are mostly holds on the stock with 10 of 17 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)