Total System Services Quarterly Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Total System Services, Inc. (NYSE:TSS) will unveil its latest earnings on Tuesday, July 24, 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 estimate of analysts is for net income of 32 cents per share, a rise of 14.3% 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. It also has not changed during the last month. Analysts are projecting profit to rise by 12.2% compared to last year’s $1.29.

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 30 cents per share versus a mean estimate of net income of 30 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 0 cents.

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A Look Back: In the first quarter, profit rose 15.6% to $56.4 million (30 cents a share) from $48.8 million (25 cents a share) the year earlier, meeting analyst expectations. Revenue rose 7.4% to $461.2 million from $429.4 million.

Stock Price Performance: Between May 21, 2012 and July 18, 2012, the stock price had risen $1.27 (5.6%), from $22.51 to $23.78. 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: Analysts are projecting a rise of 3.2% in revenue from the year-earlier quarter to $461.7 million.

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 27.1% in the third quarter of the last fiscal year and 26.9% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 3.2% in the second quarter of the last fiscal year, 6.1% in the third quarter of the last fiscal year and 7.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: There are mostly holds on the stock with 10 of 18 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.86 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.71 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 9.7% to $713 million while liabilities rose by 0.6% to $383 million.

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

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