Total System Services
The 10-second takeaway
For the quarter ended March 31 (Q1), Total System Services beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved significantly.
Margins increased across the board.
Total System Services reported revenue of $461.2 million. The 17 analysts polled by S&P Capital IQ predicted sales of $423.4 million on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $429.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.30. The 23 earnings estimates compiled by S&P Capital IQ anticipated $0.30 per share. GAAP EPS of $0.30 for Q1 were 20% higher than the prior-year quarter's $0.25 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.0%, 120 basis points better than the prior-year quarter. Operating margin was 18.4%, 140 basis points better than the prior-year quarter. Net margin was 12.2%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $436.7 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $1.78 billion. The average EPS estimate is $1.28.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 182 members out of 199 rating the stock outperform, and 17 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Total System Services a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Total System Services is outperform, with an average price target of $22.59.
Is Total System Services playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
- Add Total System Services to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Total System Services Stock Upgraded: 3 Things You Need to Know
A blockbuster quarter just won the card payments processor an upgrade. But should you really buy this stock at this price?
Why Total System Services, Inc. Dropped Today
Shares of the payments company are plunging on weaker-than-expected earnings, and a credit downgrade.
4 Companies Helping People Boost Their Finances
Helping people without a banking relationship is big business, and you can invest in the companies positioning themselves to grow in this often overlooked sub-segment.