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Total System Hits 52-Week High on Solid Q2, Dividend Hike

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On Aug 21, the stock of Total System Services, Inc. hit a 52-week high of $65.92. The rise in the stock is believed to have been driven by strong second-quarter results, an increase in dividend and recent agreements.

In one year, the stock has returned 35.5%, significantly outperforming the 23.3% gain logged by the industry and 10.6% by the S&P 500 index.

Investors favorably viewed this Zacks Rank #2 (Buy) company’s strong second-quarter earnings which beat estimates by 7.9% driven by solid revenue growth. Revenues benefited from the TransFirst acquisition.

Investors were also impressed with the company’s raised guidance following second-quarter results. Management expects total revenues of $4.80 billion to $4.89 billion, reflecting an increase of 15% to 17% over 2016 and net revenue in the range of $3.31 billion to $3.39 billion, up 9% to 12%. GAAP EPS is projected at $2.30–$2.38, up 33% to 37% from 2016, and adjusted EPS is guided at $3.22 to $3.30, reflecting an increase of 15% to 18%.

The recent 30% hike to quarterly dividend also spread cheer among investors. The new dividend of 13 cents per share will be paid on Oct 2, 2017 to shareholders of record on Sep 21, 2017.

Total System is very active in making agreements and deals with banks and other service providers which helps it to generate business volumes. Last month, the company locked a long-term agreement with Monetary LLC, a connected commerce provider offering integrated payment services and marketing automation technologies, for the point-of-sale industry.

Total System also extended its commercial payments agreement with Degussa Bank in Germany. This multi-year agreement covers a broad range of products and services that the company will provide Degussa Bank’s corporate and business clients with.

Other Stocks to Consider

Green Dot Corp. (GDOT - Free Report) has been witnessing upward estimate revisions for the last 30 days. In one year, the company’s share price has risen more than 99%. It flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Vantiv Inc. has been witnessing upward estimate revisions for the last 30 days. Further, the stock has surged nearly 35.1% in the last 12 months. It currently carries a Zacks Rank #2.

Western Union Co. (WU - Free Report) has been recording upward estimate revisions for the last 30 days. It beat estimates in two of the last four quarters, with an average positive surprise of 4%. It currently holds a Zacks Rank #2.

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