Research Desk Line-up: Discover Financial Services Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 6, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Total System Services, Inc. (NYSE: TSS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TSS, following the Company's disclosure of its financial results on October 24, 2017, for the third quarter fiscal 2017. The payment solutions provider's total revenue increased 8.8% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Credit Services industry. Pro-TD has currently selected Discover Financial Services (NYSE: DFS) for due-diligence and potential coverage as the Company reported on October 24, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Discover Financial Services when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TSS; also brushing on DFS. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=TSS

http://protraderdaily.com/optin/?symbol=DFS

Earnings Reviewed

For three months ended September 30, 2017, Total System's total revenue increased 8.8% to $1.25 billion from $1.15 billion in Q3 FY16. During Q3 FY17, the Company's net revenue increased 8% to $852.76 million from $789.59 million in the same period last year. Total revenue surpassed analysts' expectations of $1.11 billion.

During Q3 FY17, the Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 15% to $309.46 million from $269.14 million in the same period last year. For the reported quarter, Total System's selling, general, and administrative (SG&A) expenses decreased 1.2% to $149.41 million from $151.26 million in Q3 FY16.

For the reported quarter, Total System's operating income increased 28.6%, or 29.1% on a constant currency basis, to $199.69 million in Q3 2017 from $155.33 million in Q3 FY16. For the reported quarter, the Company's operating margin increased 250 basis points to 16.0% of revenue from 13.5% of revenue in Q3 FY16.

During Q3 FY17, Total System's net income increased 44.2% to $123.10 million on a y-o-y basis from $85.35 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS increased 43.3% to $0.66 on a y-o-y basis from $0.46 in the same period last year. For the reported quarter, the Company's adjusted net income increased 24.5% to $162.67 million on a y-o-y basis from $130.67 million in Q3 FY16. During Q3 FY17, the Company's adjusted diluted EPS increased 23.7% to $0.88 on a y-o-y basis from $0.71 in the same period last year. Adjusted diluted EPS surpassed analysts' expectations of $0.77.

Total System's Segment Details

Issuer Solutions - During Q3 FY17, the Issuer Solutions segment's net revenue increased 5.8% to $401.07 million from $379.15 million in the same period last year. For the reported quarter, the segment's adjusted operating income increased 14.6% to $147.76 million from $128.95 million in Q3 FY16. For the reported quarter, the segment's total transactions increased 8.6% to $5.49 million on a y-o-y basis and traditional accounts on file increased 10% to $562.1 million on a y-o-y basis.

Merchant Solutions - During Q3 FY17, the Merchant Solutions segment's net revenue decreased 7.4% to $281.82 million from $262.49 million in the same period last year. For the reported quarter, the segment's adjusted operating income increased 13.8% to $103.28 million from $90.78 million in Q3 FY16.

Netspend - During Q3 FY17, the Netspend segment's net revenue increased 15.8% to $179.92 million from $155.35 million in the same period last year. For the reported quarter, the segment's adjusted operating income increased 18.9% to $48.56 million from $40.86 million in Q3 FY16.

Balance Sheet

As on September 30, 2017, Total System's cash and cash equivalents decreased 2.7% to $413.62 million from $425.35 million on December 31, 2016. For the reported quarter, the Company's long-term borrowings, capital lease, and license agreements, excluding current portion decreased 27.7% to $2.39 billion from $3.31 billion in Q4 FY16.

During Q3 FY17, the Company's net accounts receivables decreased 5.4% to $409.17 million from $432.85 million in the fourth quarter last year. For the reported quarter, the Company's accounts payable increased 38% to $53.46 million from $38.71 million in Q4 FY16.

During FY17, Total System's YTD cash provided by operating activities increased 18.3% to $652.03 million from $551.08 million in the same period last year. During FY17, Total System's YTD free cash flow increased 22.2% to $542.67 million from $443.75 million in the same period last year.

During Q3 FY17, the company repurchased 0.4 million shares totaling $27.6 million.

Outlook

For FY17, Total System expects total revenue to be in the range of $4.84 billion to $4.89 billion and net revenue to be in the band of $3.35 billion to $3.40 billion. The Company estimates diluted EPS to be in the range of $2.37 to $2.43 and adjusted diluted EPS to be in the band of $3.29 to $3.35 for fiscal 2017.

Stock Performance

Total System Services' share price finished last Friday's trading session at $72.26, marginally up 0.12%. A total volume of 2.02 million shares have exchanged hands, which was higher than the 3-month average volume of 1.28 million shares. The Company's stock price skyrocketed 12.59% in the last three months, 23.95% in the past six months, and 48.87% in the previous twelve months. Additionally, the stock soared 47.38% since the start of the year. Shares of the Company have a PE ratio of 35.06 and have a dividend yield of 0.72%. The stock currently has a market cap of $13.30 billion.

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SOURCE: Pro-Trader Daily