Tags: Total | Systems | customers | TSS

Total Systems Still Clawing Back Customers

By    |   Wednesday, 22 February 2012 08:28 AM

Electronic payment processor Total Systems (TSS) is still clawing back its financial institution customers after large losses. These dramatic ups and downs can rile buy and hold investors. Over 10 years, Total Systems has also returned just 1.34 percent annually, far less than the S&P 500.

Total Systems offers long-term contracts to large financial institutions. After enduring years of declining accounts on file, Total Systems finally logged a 17.9 percent year-over-year increase in 2011. Over half of the outfit’s revenues come from North American services, expected to notch strong gains this year.

For fourth quarter 2011, Total Systems reported sales of $472.2 million, up 7.3 percent. Net income for the quarter was 31 cents, up 29.4 percent. For the full-year 2011, the company reported sales of $1.8 billion, up 5.3 percent. Net income was $1.15 per share, up 14.4 percent.

For 2012, Wall Street’s earnings consensus is $1.28 per share. For 2013, the consensus estimate is $1.41.

Moving on

Total System’s shareholder return in 2011 was a healthy 29.2 percent. The outfit expects to notch double-digit earnings growth in 2012. Overseas expansions and recent acquisitions should bolster growth, add S&P analysts. Business losses and price pressures will continue being headwinds, though. 

For now, analysts say wait. Of the 22 analysts followed by Thomson/First Call, only three have strong buy recommendations and five have buys, with a whopping 12 holds, one underperform and one sell.

S&P analyst have a hold rating on Total Systems, adding that it’s navigating a difficult period.

The company next reports on April 24.

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Wednesday, 22 February 2012 08:28 AM
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