Total System Services Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Total System Services (NYSE:TSS) will unveil its latest earnings on Tuesday, January 24, 2012. 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 Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 31 cents per share, a rise of 29.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 30 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 31 cents during the last month. For the year, analysts are projecting net income of $1.15 per share, a rise of 27.8% from last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 30 cents per share against a mean estimate of net income of 28 cents, and the quarter before, the company exceeded forecasts by one cent with profit of 28 cents versus a mean estimate of net income of 27 cents.

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Wall St. Revenue Expectations: On average, analysts predict $450.3 million in revenue this quarter, a rise of 2.4% from the year ago quarter. Analysts are forecasting total revenue of $1.75 billion for the year, a rise of 1.7% from last year’s revenue of $1.72 billion.

Analyst Ratings: Analysts are bullish on Total System Services as eight analysts rate it as a buy, two rate it as a sell and nine rate it as a hold.

A Look Back: In the third quarter, profit rose 27.1% to $58.1 million (30 cents a share) from $45.7 million (23 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.1% to $459.7 million from $433.2 million.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 3.2% in the second quarter from the year earlier, climbed 3.4% in the first quarter from the year-ago quarter and 1.2% in the fourth quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 2.2%. The quarter with the biggest boost was the most recent quarter, which saw a 27.1% surge.

Competitors to Watch: Visa Inc. (NYSE:V), Fidelity National Information Services (NYSE:FIS), MasterCard Incorporated (NYSE:MA), Cass Information Systems (NASDAQ:CASS), NetSpend Holdings Inc (NASDAQ:NTSP), Fiserv, Inc. (NASDAQ:FISV), MoneyGram Intl., Inc. (NYSE:MGI), ACI Worldwide Inc (NASDAQ:ACIW), Banks.com Inc (AMEX:BNX), and Intl. Business Machines Corp. (NYSE:IBM).

Stock Price Performance: During October 20, 2011 to January 18, 2012, the stock price had risen $2.48 (13.5%) from $18.41 to $20.89. The stock price saw one of its best stretches over the last year between January 6, 2012 and January 18, 2012 when shares rose for eight-straight days, rising 7.7% (+$1.49) over that span. It saw one of its worst periods between December 9, 2011 and December 15, 2011 when shares fell for five-straight days, falling 4.4% (-89 cents) over that span.

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

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