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Total System Services Inc.

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Total System suffers from stiff competition and huge cash outlays on acquisition. Further, the new rules aimed to boost consumer protections for prepaid accounts and cards are likely to hurt the company's top line, with 2017 revenue to be down by about $20–$25 million. The shares have gained 7.4% year to date, clearly underperforming the Zacks categorized Financial Transaction Services industry that has gained 9.5% over the same time frame. However, the company is set to benefit from its robust NetSpend business, while the TransFirst acquisition supports its merchant acquiring business. For 2017, management anticipates adjusted EPS in the range of $3.05–$3.15, reflecting an increase of about 9–12%. The company is expected to report first quarter earnings on Apr 25th. The Zacks Consensus earnings estimate for the quarter is pegged at $0.72 per share which translates into a year over year growth rate of 16.5%.

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