Total System Services Beats Estimates Yet Again
Total System Services (NYS: TSS) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Total System Services beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew and earnings per share grew significantly.
Margins grew across the board.
Total System Services logged revenue of $472 million. The 14 analysts polled by S&P Capital IQ expected revenue of $463 million. Sales were 7.3% higher than the prior-year quarter's $440 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.31. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.31 for Q4 were 30% higher than the prior-year quarter's $0.24 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 31.6%, 310 basis points better than the prior-year quarter. Operating margin was 19.0%, 340 basis points better than the prior-year quarter. Net margin was 12.7%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $438 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $1.8 billion. The average EPS estimate is $1.27.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 177 members out of 195 rating the stock outperform, and 18 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Total System Services a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Total System Services is hold, with an average price target of $20.24.
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At the time this article was published 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 ofMotley 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.
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