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.
Fiserv (FISV) Beats on Q3 Earnings, Revenues, Ups EPS View
Read MoreHide Full Article
Fiserv, Inc. reported solid third-quarter 2020 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.20 beat the consensus mark by 4.4% and increased year over year. Adjusted revenues of $3.59 billion beat the consensus estimate by 0.9%.
Internal revenue growth was 3% in the reported quarter, backed by 6% growth in the Acceptance segment and 1% growth in the Payments segment while the Fintech segment remained flat year over year.
So far this year, shares of Fiserv have lost 13.1% against 0.7% decline of the industry it belongs to. Meanwhile, the Zacks S&P 500 composite has gained 5.8%.
Let’s check out the numbers in detail.
Revenues in Detail
Revenues at the Merchant Acceptance segment came in at $1.45 billion, up 43.7% year over year. Adjusted revenues of $1.46 billion grew 1.3% year over year.
Revenues at the Payments and Network segment increased 20.3% year over year to $1.39 billion. Adjusted revenues of $1.39 billion declined 0.1% year over year.
Revenues at the Financial Technology segment decreased 1.1% year over year to $727 million.
Revenues at Total processing and services segment increased 20.9% year over year to $3.15 billion while product revenues grew 21.7% year over year to $633 million.
Adjusted operating income of $1.18 billion was up 9.5% from the year-ago quarter. Adjusted operating margin of 32.9% grew 310 basis points (bps) year over year.
Adjusted operating income at the Merchant Acceptance segment was $425 million, up 7.9% year over year. Adjusted operating margin grew 180 bps year over year to 29.2%.
Adjusted operating income at the Payments and Network segment was $608 million, up 7.8% year over year. Adjusted operating margin improved 310 bps year over year to 43.5%.
Operating income at the Financial Technology segment totaled $265 million, up 18.8% year over year. Operating margin of 36.4% improved 600 bps.
Fiserv exited third-quarter 2020 with cash and cash equivalents of $937 million compared with $869 million at the end of the prior quarter. Long-term debt was $20.9 billion compared with $21.5 billion at the end of the prior quarter.
The company generated $1.04 billion of net cash from operating activities in the reported quarter. Free cash flow was $939 million. Capital expenditures were $201 million.
2020 Guidance
Fiserv expects full-year 2020 adjusted earnings per share to register nearly 11% growth compared with the prior growth rate of 10%.
The company is hopeful of delivering its 35th consecutive year of double-digit adjusted earnings per share growth in 2020.
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2020 results, with adjusted earnings of $1.87 per share beating the Zacks Consensus Estimate by 16.2% and improving 26.4% on a year-over-year basis. The reported figure exceeded the guided range of $1.30-$1.40.
The Interpublic Group of Companies (IPG - Free Report) reported better-than-expected third-quarter 2020 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate by 43.2% and improved 8.2% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported solid third-quarter 2020 adjusted earnings per share of $1.63, which beat the consensus mark by 8% and improved 1.9% on a year-over-year basis. The reported figure was above the guided range of $1.47-$1.55.
Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Image: Shutterstock
Fiserv (FISV) Beats on Q3 Earnings, Revenues, Ups EPS View
Fiserv, Inc. reported solid third-quarter 2020 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.20 beat the consensus mark by 4.4% and increased year over year. Adjusted revenues of $3.59 billion beat the consensus estimate by 0.9%.
Internal revenue growth was 3% in the reported quarter, backed by 6% growth in the Acceptance segment and 1% growth in the Payments segment while the Fintech segment remained flat year over year.
So far this year, shares of Fiserv have lost 13.1% against 0.7% decline of the industry it belongs to. Meanwhile, the Zacks S&P 500 composite has gained 5.8%.
Let’s check out the numbers in detail.
Revenues in Detail
Revenues at the Merchant Acceptance segment came in at $1.45 billion, up 43.7% year over year. Adjusted revenues of $1.46 billion grew 1.3% year over year.
Revenues at the Payments and Network segment increased 20.3% year over year to $1.39 billion. Adjusted revenues of $1.39 billion declined 0.1% year over year.
Revenues at the Financial Technology segment decreased 1.1% year over year to $727 million.
Revenues at Total processing and services segment increased 20.9% year over year to $3.15 billion while product revenues grew 21.7% year over year to $633 million.
Fiserv, Inc. Revenue (TTM)
Fiserv, Inc. revenue-ttm | Fiserv, Inc. Quote
Operating Results
Adjusted operating income of $1.18 billion was up 9.5% from the year-ago quarter. Adjusted operating margin of 32.9% grew 310 basis points (bps) year over year.
Adjusted operating income at the Merchant Acceptance segment was $425 million, up 7.9% year over year. Adjusted operating margin grew 180 bps year over year to 29.2%.
Adjusted operating income at the Payments and Network segment was $608 million, up 7.8% year over year. Adjusted operating margin improved 310 bps year over year to 43.5%.
Operating income at the Financial Technology segment totaled $265 million, up 18.8% year over year. Operating margin of 36.4% improved 600 bps.
Fiserv, Inc. Price, Consensus and EPS Surprise
Fiserv, Inc. price-consensus-eps-surprise-chart | Fiserv, Inc. Quote
Balance Sheet and Cash Flow
Fiserv exited third-quarter 2020 with cash and cash equivalents of $937 million compared with $869 million at the end of the prior quarter. Long-term debt was $20.9 billion compared with $21.5 billion at the end of the prior quarter.
The company generated $1.04 billion of net cash from operating activities in the reported quarter. Free cash flow was $939 million. Capital expenditures were $201 million.
2020 Guidance
Fiserv expects full-year 2020 adjusted earnings per share to register nearly 11% growth compared with the prior growth rate of 10%.
The company is hopeful of delivering its 35th consecutive year of double-digit adjusted earnings per share growth in 2020.
Currently, Fiserv carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2020 results, with adjusted earnings of $1.87 per share beating the Zacks Consensus Estimate by 16.2% and improving 26.4% on a year-over-year basis. The reported figure exceeded the guided range of $1.30-$1.40.
The Interpublic Group of Companies (IPG - Free Report) reported better-than-expected third-quarter 2020 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate by 43.2% and improved 8.2% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported solid third-quarter 2020 adjusted earnings per share of $1.63, which beat the consensus mark by 8% and improved 1.9% on a year-over-year basis. The reported figure was above the guided range of $1.47-$1.55.
Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Check out the 2020 Election Stock Report >>