Back to top

Analyst Blog

Recently Fiserv, Inc. (FISV - Analyst Report) declared that it has improved its Signature bank portal, especially for the clients in U.S financial organizations. The company’s advanced Signature 12.1 platform would optimize the efficacy, heighten the growth prospects and minimize the risk factor of these institutions.

Fiserv’s customized portals will provide excellent facilities to these financial institutions. They will be able to utilize various types of pricing strategy for different types of clients in the field of retail, commercial and wealth management. Several other services such as developed commercial lending facility, high data integration, improved customer services and secured accounting shall also be rendered from Fiserv’s platform.

Fiserv’s management averred that its completely integrated user-friendly solution would improve the account process management and banking services of these institutions significantly and augment its client base in future. Fiserv’s integrated, wide-ranging suite of products will boost its growth going forward.

The company’s adjusted revenues (excluding output solutions postage reimbursements) amounted to $1.03 billion, rising 2.6% year over year but remaining flat sequentially. Revenue growth across the company’s debit, account processing and lending businesses was the primary cause for the annual rise in adjusted revenues in the quarter. For the full year 2012, management projects an annual adjusted revenue growth of 4% - 6% and adjusted internal revenue growth of 3.0% - 4.5%.

However, it is always wise for Fiserv to be extra cautious of competitive strides of its business rivals in the industry. Formidable players to take note of in this regard include Mastercard Incorporated (MA - Analyst Report), Fidelity National Information Services, Inc. (FIS - Analyst Report) and Total System Services, Inc. (TSS - Analyst Report). Moreover, Fiserv faces an ongoing threat from billers and self-sufficient financial institutions that develop and use their own electronic payment transactions and Internet banking solutions.

The current Zacks Consensus Estimates for Fiserv are $1.27 and $5.18 for the third quarter of 2012 and for 2012, respectively. The estimates represent a year-over-year growth of 9.82% for the third quarter and 13.06% for 2012. We currently have a long-term recommendation of ‘Neutral’ for Fiserv. The stock also bears a Zacks #3 Rank, which translates into a short-term rating of ‘Hold’.

Please login to Zacks.com or register to post a comment.