UPDATE 2-TSYS Q1 beats; raises FY outlook above market
* Q1 EPS $0.26 vs est. EPS $0.23
* Q1 merchant services revenue up 18 pct
* Sees FY 2010 EPS from cont ops at $0.96-$0.98
* Shares up 3 pct after the bell (Recasts; adds conference call details, background, updates share movement)
BANGALORE, April 20 (Reuters) - Payment processor TSYS (TSS.N) reported quarterly profit above market view, helped partly by higher revenue from the merchant services segment, and raised its fiscal 2010 outlook above estimates. For the full year, the payment processor now expects earnings from continuing operations of between 96 cents and 98 cents a share. It sees revenue in the range of $1.71 billion to $1.75 billion in 2010.
Analysts were expecting earnings of 95 cents a share on revenue of $1.63 billion for fiscal 2010, according to Thomson Reuters I/B/E/S.
The company said it revised its fiscal 2010 earnings and revenue outlook to reflect its acquisition of a 51 percent interest in First National Bank of Omaha's FINNB.UL merchant acquiring business to form a joint venture that will offer transaction processing and merchant support to North American merchants.
For 2010, TSYS expects its joint venture First National Merchant Solutions LLC to contribute $95 million to $97 million to total revenue, $2 million to $3 million to net income and about a cent to basic earnings per share.
The company said on a post-earnings call that it incurred a severance-related expense of $1.5 million during the first quarter.
In January, TSYS said it reduced its overall workforce by about 5 percent in 2009, and plans to cut about the same number of jobs in 2010.
The company expects strong improvement in growth in 2011, and said it is seeing some improvement in the consumer market.
For the first quarter, net income was $51.3 million, or 26 cents a share, compared with $46.5 million, or 24 cents a share, last year.
Total revenue rose 2 percent to $415.4 million, with merchant services revenue rising 18 percent to $89.2 million.
Analysts on average were looking for a profit of 23 cents a share, before items, on revenue of $407.2 million.
Shares of the company were up 3 percent at $16.98 in trading after the bell. They closed at $16.50 Tuesday on the New York Stock Exchange. (Reporting by Abhinav Sharma and Brenton Cordeiro in Bangalore; Editing by Unnikrishnan Nair)