Total System Services Inc. Earnings: Revenue Increase Helps Margin, Net Income Climbs
S&P 500 (NYSE:SPY) component Total System Services Inc. (NYSE:TSS) reported its results for the first quarter. 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.
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Total System Services Earnings Cheat Sheet for the First Quarter
Results: Net income for Total System Services Inc. rose to $56.4 million (30 cents per share) vs. $48.8 million (25 cents per share) in the same quarter a year earlier. This marks a rise of 15.6% from the year-earlier quarter.
Revenue: Rose 7.4% to $461.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Total System Services Inc. fell in line with the mean analyst estimate of 30 cents per share. It beat the average revenue estimate of $423.7 million.
Quoting Management: “Our first quarter results continue to benefit from strong same client transaction growth, which was 14.4% in our card issuer processing business, when compared to last year. POS transactions, excluding deconverted clients in our indirect business, were up 11% and sales volume from our direct merchant business was up 20.9% over same quarter last year. Operating income was $84.8 million, resulting in an increase of 16.2% over last year. Our consolidated organic revenue growth of 7.7% for the quarter was the main driver in our results. This quarter represents the 8th consecutive quarter that we reported positive year-over-year growth in revenues before reimbursable items,” said Philip W. Tomlinson, chairman and chief executive officer of TSYS.
The comapny has now seen its net income increase for four quarters in a row. In the fourth quarter of the last fiscal year, net income rose 26.9% while the figure climbed 27.1% in the third quarter of the last fiscal year and 8.1% in the second quarter of the last fiscal year from the year earlier.
Revenue has increased for four quarters in a row. Revenue increased 7.3% to $472.2 million in the fourth quarter of the last fiscal year. The figure rose 6.1% in the third quarter of the last fiscal year from the year earlier and climbed 3.2% in the second quarter of the last fiscal year from the year-ago quarter.
The company has met estimates for two consecutive quarters. It reported net income of 31 cents in the fourth quarter of the last fiscal year.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past month, the average estimate for the second quarter has gone up from 31 cents per share to 32 cents. At $1.28 per share, the average estimate for the fiscal year has risen from $1.27 sixty days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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