Total System Services Earnings Approach

S&P 500 (NYSE:SPY) component Total System Services, Inc. (NYSE:TSS) will unveil its latest earnings on Tuesday, October 23, 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 32 cents per share, a rise of 6.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 33 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 32 cents during the last month. For the year, analysts are projecting net income of $1.29 per share, a rise of 12.2% from last year.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at profit of 35 cents per share against a mean estimate of net income of 32 cents. The company fell in line with estimates in the first quarter.

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A Look Back: In the second quarter, profit rose 24.1% to $66.7 million (35 cents a share) from $53.7 million (28 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 3.4% to $462.7 million from $447.6 million.

Stock Price Performance: Between September 19, 2012 and October 17, 2012, the stock price dropped 72 cents (-3%), from $24.16 to $23.44. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 16, 2012, when shares rose for nine straight days, increasing 5.5% (+$1.19) over that span. It saw one of its worst periods between May 2, 2012 and May 10, 2012 when shares fell for seven straight days, dropping 3.4% (-80 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $470.1 million in revenue this quarter, a rise of 2.2% from the year-ago quarter. Analysts are forecasting total revenue of $1.88 billion for the year, a rise of 3.9% from last year’s revenue of $1.81 billion.

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 26.9% in the fourth quarter of the last fiscal year and 15.6% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 6.1% in the third quarter of the last fiscal year, 7.3% in the fourth quarter of the last fiscal year and 7.4% in the first quarter before increasing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 11 of 17 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.03 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.

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

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