Bank of America Comments on Total System Services

Bank of America has published a research report on Total Systems Services TSS. In the report, Bank of America wrote, "TSS reported solid 2Q results that were slightly ahead of our estimates and Street consensus. Operating revenue of $380mn was slightly ahead of our $376mn estimate, with EPS of $0.28, $0.01 ahead of our and Street expectations (aided by a lower tax rate, partially offset by below the line items). Importantly, organic revenue (ex-termination fees & F/X) improved to ~4.5%, driven primarily by improving revenue trends in North America & International Services. Total cards on file increased sequentially for the third quarter in a row, while transaction growth was double-digit for both NA & International. Management reiterated its FY11 outlook ($1.09-$1.11), but we sense there is modest upside potential." Bank of America rated Total Systems Services an Underperform with a price target of $17.00. Total Systems Services closed Tuesday at $18.16.