Nomura Securities Maintains a 'Neutral' on Total System Services (TSS); Q2 Review
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Price: $133.27 --0%
Rating Summary:
15 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
Rating Summary:
15 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
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Nomura Securities maintains a 'Neutral' on Total System Services (NYSE: TSS) price target of $22.00.
Analyst, Bill Carcache, said, "TSYS reported 2Q12 EPS of $0.35, compared to our / consensus of $0.33 / $0.32, respectively. Although the company beat our top line estimate by $0.01, the majority of the beat was driven by a lower-than-expected tax rate (due to a nonrecurring tax benefit during the quarter). TSYS reported healthy revenue and transaction growth across all three segments in 2Q12. The business appears to be hanging tough despite the challenging macro environment. The real story this quarter revolved around the recently-announced contract to provide issuer processing services for Bank of America’s (NYSE: BAC) consumer card portfolio. We do not know what the specific terms of the deal are. That said, we attempt to size the financial impact by observing the revenue yield per AOF in the company’s existing North America business and relating this to the estimated size of the new portfolio (~70mn accounts)."
FY 12E EPS from USD 1.43 to USD 1.45; FY 13E EPS from USD 1.60 to USD 1.61.
For an analyst ratings summary and ratings history on Total System Services click here. For more ratings news on Total System Services click here.
Shares of Total System Services closed at $23.68 yesterday.
Analyst, Bill Carcache, said, "TSYS reported 2Q12 EPS of $0.35, compared to our / consensus of $0.33 / $0.32, respectively. Although the company beat our top line estimate by $0.01, the majority of the beat was driven by a lower-than-expected tax rate (due to a nonrecurring tax benefit during the quarter). TSYS reported healthy revenue and transaction growth across all three segments in 2Q12. The business appears to be hanging tough despite the challenging macro environment. The real story this quarter revolved around the recently-announced contract to provide issuer processing services for Bank of America’s (NYSE: BAC) consumer card portfolio. We do not know what the specific terms of the deal are. That said, we attempt to size the financial impact by observing the revenue yield per AOF in the company’s existing North America business and relating this to the estimated size of the new portfolio (~70mn accounts)."
FY 12E EPS from USD 1.43 to USD 1.45; FY 13E EPS from USD 1.60 to USD 1.61.
For an analyst ratings summary and ratings history on Total System Services click here. For more ratings news on Total System Services click here.
Shares of Total System Services closed at $23.68 yesterday.
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