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.
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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.