We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Disappointment in Store for Fiserv (FISV) in Q1 Earnings?
Read MoreHide Full Article
Fiserv, Inc. is scheduled to report first-quarter 2019 results on Apr 30, after market close.
While strength in Payments and Industry Products segment should boost the company’s top line, the bottom line is likely to benefit from internal revenue growth, tax leverage and operational effectiveness.
So far this year, shares of Fiserv have gained 17.7% compared with the 25.6% rise of the industry it belongs to and 16.5% increase of the Zacks S&P 500 composite.
Let's check out how things are shaping up for the announcement.
Top-Line Expectations
The Zacks Consensus Estimate for first-quarter 2019 revenues stands at $1.50 billion, indicating growth of 4% from the year-ago reported figure.
The expected growth is likely to be driven by strength in Payments and Industry Products segment. The consensus estimate for this segment’s revenues is pegged at $913 million, indicating growth of 8.4% from the year-ago reported figure. The segment should benefit from solid performance of card services, biller solutions and electronic payments. The company is likely to witness solid growth across organic debit transaction and total P2P transactions, including both Popmoney and Zelle solutions, increase in Mobiliti ASP subscribers and client additions in its unified digital platform Architect. In fourth-quarter 2018, segment revenues of $944 million increased 9.1% year over year.
For Financial Institution Services revenues,the consensus mark is pegged at $604 million, indicating decline of 1.9% from the year-ago reported figure. Divestiture of 55% interest of the company's Lending Solutions business (the "Lending Transaction") is expected to weigh on the segment. In fourth-quarter 2018, segment revenues of $615 million decreased 7.9% year over year.
In fourth-quarter 2018, total revenues of $1.55 billion increased 2.3% year over year. Internal revenue growth was 4.5%.
Bottom Line to Improve Year Over Year
The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at 82 cents, implying growth of 7.9% from the year-ago period. The bottom line is likely to benefit from internal revenue growth, tax leverage and operational effectiveness.
In fourth-quarter 2018, adjusted earnings per share of 84 cents increased 23.5% year over year.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Fiserv has a Zacks Rank #3 and an Earnings ESP of -1.66%, a combination that makes surprise prediction difficult.
Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in first-quarter 2019:
EVERTEC (EVTC - Free Report) has an Earnings ESP of +3.73% and a Zacks Rank #3. The company is slated to release results on May 1.
Delphi Technologies has an Earnings ESP of +1.56% and a Zacks Rank #3. The company is scheduled to report results on May 2.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
Image: Bigstock
Is Disappointment in Store for Fiserv (FISV) in Q1 Earnings?
Fiserv, Inc. is scheduled to report first-quarter 2019 results on Apr 30, after market close.
While strength in Payments and Industry Products segment should boost the company’s top line, the bottom line is likely to benefit from internal revenue growth, tax leverage and operational effectiveness.
So far this year, shares of Fiserv have gained 17.7% compared with the 25.6% rise of the industry it belongs to and 16.5% increase of the Zacks S&P 500 composite.
Let's check out how things are shaping up for the announcement.
Top-Line Expectations
The Zacks Consensus Estimate for first-quarter 2019 revenues stands at $1.50 billion, indicating growth of 4% from the year-ago reported figure.
The expected growth is likely to be driven by strength in Payments and Industry Products segment. The consensus estimate for this segment’s revenues is pegged at $913 million, indicating growth of 8.4% from the year-ago reported figure. The segment should benefit from solid performance of card services, biller solutions and electronic payments. The company is likely to witness solid growth across organic debit transaction and total P2P transactions, including both Popmoney and Zelle solutions, increase in Mobiliti ASP subscribers and client additions in its unified digital platform Architect. In fourth-quarter 2018, segment revenues of $944 million increased 9.1% year over year.
For Financial Institution Services revenues,the consensus mark is pegged at $604 million, indicating decline of 1.9% from the year-ago reported figure. Divestiture of 55% interest of the company's Lending Solutions business (the "Lending Transaction") is expected to weigh on the segment. In fourth-quarter 2018, segment revenues of $615 million decreased 7.9% year over year.
In fourth-quarter 2018, total revenues of $1.55 billion increased 2.3% year over year. Internal revenue growth was 4.5%.
Bottom Line to Improve Year Over Year
The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at 82 cents, implying growth of 7.9% from the year-ago period. The bottom line is likely to benefit from internal revenue growth, tax leverage and operational effectiveness.
In fourth-quarter 2018, adjusted earnings per share of 84 cents increased 23.5% year over year.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Fiserv has a Zacks Rank #3 and an Earnings ESP of -1.66%, a combination that makes surprise prediction difficult.
Fiserv, Inc. Price and EPS Surprise
Fiserv, Inc. Price and EPS Surprise | Fiserv, Inc. Quote
Stocks That Warrant a Look
Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in first-quarter 2019:
SailPoint Technologies has an Earnings ESP of +100.00% and a Zacks Rank #1. The company is scheduled to report results on May 8. You can see the complete list of today’s Zacks #1 Rank stocks here.
EVERTEC (EVTC - Free Report) has an Earnings ESP of +3.73% and a Zacks Rank #3. The company is slated to release results on May 1.
Delphi Technologies has an Earnings ESP of +1.56% and a Zacks Rank #3. The company is scheduled to report results on May 2.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>