Barclays Maintains an 'Overweight' on Total System Services (TSS); 3Q11 Beat; Core Business Metrics Continue to Show Solid Trends
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Price: $133.27 --0%
Rating Summary:
15 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Overweight' on Total System Services (NYSE: TSS) price target of $23.00.
Barclays analyst says, "TSS reported 3Q11 EPS of $0.30, beating our and the consensus estimate of $0.29. However, excluding one-time items (a drag on operating income ~$9.1mn), 3Q EPS would have been ~$0.33. Revenues of $460mn came in 6% higher than the consensus estimate and in line with our estimate, with strength driven by both the company's North American services segment (+5.3% Y/Y; ~1% higher than our estimate) and the International Services segment (+17% Y/Y; 11% constant currency). Management raised 2011 guidance, which calls for revenue growth before reimbursable items of 5-6% (vs. 3-5% prior; roughly in-line with our estimate) and full year EPS of $1.14-$1.15 (vs. $1.09-$1.11 prior, our estimate of $1.14 and consensus of $1.11). During the quarter, TSS repurchased ~2.2mn shares, and today, the company announced a dividend increase of ~43% (the first in five years). That said, given capital structure opportunities and healthy free cash flow generation (~$275-300mn per year), we think more capital return may be considered a priority by some investors going forward."
For more ratings news on Total System Services click here and for the rating history of Total System Services click here.
Shares of Total System Services closed at $18.71 yesterday.
Barclays analyst says, "TSS reported 3Q11 EPS of $0.30, beating our and the consensus estimate of $0.29. However, excluding one-time items (a drag on operating income ~$9.1mn), 3Q EPS would have been ~$0.33. Revenues of $460mn came in 6% higher than the consensus estimate and in line with our estimate, with strength driven by both the company's North American services segment (+5.3% Y/Y; ~1% higher than our estimate) and the International Services segment (+17% Y/Y; 11% constant currency). Management raised 2011 guidance, which calls for revenue growth before reimbursable items of 5-6% (vs. 3-5% prior; roughly in-line with our estimate) and full year EPS of $1.14-$1.15 (vs. $1.09-$1.11 prior, our estimate of $1.14 and consensus of $1.11). During the quarter, TSS repurchased ~2.2mn shares, and today, the company announced a dividend increase of ~43% (the first in five years). That said, given capital structure opportunities and healthy free cash flow generation (~$275-300mn per year), we think more capital return may be considered a priority by some investors going forward."
For more ratings news on Total System Services click here and for the rating history of Total System Services click here.
Shares of Total System Services closed at $18.71 yesterday.
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