DOW JONES NEWSWIRES
Total System Services Inc.'s (TSS) third-quarter profit dropped 17% as revenue edged up but costs jumped.
The company raised its forecast for 2010 earnings by 2 cents to a range of 98 cents to $1 a share but cut its revenue target to a range of $1.7 billion to $1.73 billion, from $1.71 billion to $1.75 billion.
The payment-services provider, whose technologies support consumer finance and credit and debit cards for financial institutions, has seen revenue increase in recent quarters. It had struggled during the downturn after losing some big customers.
It reported third-quarter earnings of $45.7 million, or 23 cents a share, down from $55 million, or 28 cents a share, a year earlier. Revenue edged up 1% to $433.2 million.
Analysts polled by Thomson Reuters most recently estimated earnings of 23 cents on $435 million in revenue.
Gross margin dipped to 30.1% from 31.3%. Also hurting the bottom line was a 12% increase in overhead costs.
Revenue in the North America services segment--by far its largest on that basis--slid 12% while it dipped 1% abroad. Merchant-services revenue jumped 38%.
Shares closed at $15.98.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; email@example.com