It has been about a month since the last earnings report for Fiserv . Shares have lost about 5.8% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Fiserv due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fiserv Beats Q4 Earnings & Revenue Estimates
Fiserv reported impressive fourth-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.57 beat the consensus mark by 1.3% and increased 21% year over year. Adjusted revenues of $4 billion missed the consensus estimate by a slight margin and increased 11% year over year.
Organic revenue growth was 11% in the reported quarter, led by 19% growth in the Acceptance segment, 4% growth in the Fintech segment and 8% growth in the Payments segment.
Other Quarterly Details
Processing and services revenues of $3.5 billion increased 12.5% year over year. Product revenues of $772 million were up 5% year over year.
Revenues at the Merchant Acceptance segment came in at $1.7 billion, up 18% year over year. There were no adjustments to these revenues in the reported as well as the year-ago quarter. Revenues at the Payments and Network segment increased 9% year over year to $1.5 billion. Adjusted revenues in the segment increased 8% year over year. Revenues at the Financial Technology segment increased 4% year over year to $771 million.
Adjusted operating income of $1.4 billion was up 11% from the year-ago quarter. Adjusted operating margin of 35.6% stayed flat year over year.
Balance Sheet and Cash Flow
Fiserv exited the quarter with cash and cash equivalents of $835 million compared with $933 million at the end of the prior quarter. Long-term debt was $20.7 billion compared with $20.5 billion at the end of the prior quarter.
The company generated $1.3 billion of net cash from operating activities and free cash flow was $997 million. Capital expenditures were $346 million. The company repurchased 9.9 million shares for $1 billion in the quarter.
2022 Guidance
Adjusted earnings per share are anticipated in the range of $6.4 to $6.55. The company expects organic revenue growth of 7-9%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Fiserv has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Fiserv has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Fiserv (FISV) Down 5.8% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Fiserv . Shares have lost about 5.8% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Fiserv due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Fiserv Beats Q4 Earnings & Revenue Estimates
Fiserv reported impressive fourth-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.57 beat the consensus mark by 1.3% and increased 21% year over year. Adjusted revenues of $4 billion missed the consensus estimate by a slight margin and increased 11% year over year.
Organic revenue growth was 11% in the reported quarter, led by 19% growth in the Acceptance segment, 4% growth in the Fintech segment and 8% growth in the Payments segment.
Other Quarterly Details
Processing and services revenues of $3.5 billion increased 12.5% year over year. Product revenues of $772 million were up 5% year over year.
Revenues at the Merchant Acceptance segment came in at $1.7 billion, up 18% year over year. There were no adjustments to these revenues in the reported as well as the year-ago quarter. Revenues at the Payments and Network segment increased 9% year over year to $1.5 billion. Adjusted revenues in the segment increased 8% year over year. Revenues at the Financial Technology segment increased 4% year over year to $771 million.
Adjusted operating income of $1.4 billion was up 11% from the year-ago quarter. Adjusted operating margin of 35.6% stayed flat year over year.
Balance Sheet and Cash Flow
Fiserv exited the quarter with cash and cash equivalents of $835 million compared with $933 million at the end of the prior quarter. Long-term debt was $20.7 billion compared with $20.5 billion at the end of the prior quarter.
The company generated $1.3 billion of net cash from operating activities and free cash flow was $997 million. Capital expenditures were $346 million. The company repurchased 9.9 million shares for $1 billion in the quarter.
2022 Guidance
Adjusted earnings per share are anticipated in the range of $6.4 to $6.55. The company expects organic revenue growth of 7-9%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Fiserv has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Fiserv has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.