Total System Services, Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Total System Services, Inc. (NYSE:TSS) will unveil its latest earnings on Tuesday, July 26, 2011. Total System Services Inc. is a payment solutions provider company. It offers electronic payment processing, merchant services and related services to financial and non-financial institutions globally. American Express Earnings Cheat Sheet: Profits Grow by Double Digits For Fifth Straight Quarter>>

Total System Services, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 27 cents per share, a rise of 8% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting net income of $1.10 per share, a rise of 22.2% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported profit of 25 cents per share versus a mean estimate of net income of 25 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 0 cents.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $437.2 million in revenue this quarter, a rise of 0.8% from the year ago quarter. Analysts are forecasting total revenue of $1.78 billion for the year, a rise of 3.5% from last year’s revenue of $1.72 billion.

Analyst Ratings: Analysts seem relatively indifferent about Total System Services with 11 of 17 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 3.4% to $429.4 million in first quarter. The figure rose 1.2% in the fourth quarter of the last fiscal year from the year earlier, climbed 0.2% in the third quarter of the last fiscal year from the year-ago quarter and 5.3% in the second quarter of the last fiscal year.

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 12.6% over the past four quarters. The quarter hit the hardest was the fourth quarter of the last fiscal year, that saw a 21.7% drop.

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 April 25, 2011 to July 20, 2011, the stock price had fallen 84 cents (-4.4%) from $18.98 to $18.14. The stock price saw one of its best stretches over the last year between October 7, 2010 and October 18, 2010 when shares rose for eight-straight days, rising 4.6% (+70 cents) over that span. It saw one of its worst periods between November 22, 2010 and November 30, 2010 when shares fell for six-straight days, falling 3.6% (-56 cents) over that span. Shares are up $2.88 (+18.9%) year to date.

(Source: Xignite Financials)

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