Total System Services Inc.'s third-quarter earnings rose 27% as the company continued to benefit from strong international revenue growth, while its North American business also improved.
The company's board authorized a 43% increase in its quarterly dividend, to 10 cents a share from 7 cents a share. The increased payout is expected to cost TSYS an additional $5.8 million per period.
For the year, the company raised its per-share earnings forecast to $1.14 to $1.15 on revenue of $1.78 billion to $1.8 billion from its earlier view for earnings of $1.09 to $1.11 on revenue of $1.75 billion to $1.79 billion.
The company is seeing resiliency in the card market, an increase in transactions and the addition of new accounts, according to Chairman and Chief Executive Philip W. Tomlinson.
TSYS reported a profit of $58.1 million, or 30 cents a share, up from $45.7 million, or 23 cents a share, a year earlier. Revenue increased 6.1% to $459.7 million.
Analysts polled by Thomson Reuters most recently forecast earnings of 29 cents on revenue of $439 million.
Gross margin was flat at 30.1%.
Total issuer cardholder transactions increased 13%. Accounts on file grew 16%.
Revenue for North American services rose 5.3%, while international services revenue improved 17%. However, merchant services sales were down 1.8%.
Shares closed Tuesday down 2.9% at $18.71 and were inactive in after-hours trading. The stock is up 22% this year.
