Fiserv, Inc. 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.
Shares of Fiserv have declined 6.7% over the past year compared with 21.2% loss of the industry it belongs to.
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 Zacks Consensus Estimate of $6.39 lies below the guidance. The company expects organic revenue growth of 7-9%.
Currently, Fiserv carries a Zacks Rank #3 (Hold).
Performance of Some Other Business Services Companies
Robert Half International (RHI - Free Report) delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.
Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
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Fiserv, Inc. 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.
Shares of Fiserv have declined 6.7% over the past year compared with 21.2% loss of the industry it belongs to.
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 Zacks Consensus Estimate of $6.39 lies below the guidance. The company expects organic revenue growth of 7-9%.
Currently, Fiserv carries a Zacks Rank #3 (Hold).
Performance of Some Other Business Services Companies
Robert Half International (RHI - Free Report) delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.
Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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