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Fiserv (FISV) Beats on Earnings in Q2, Ups 2022 Guidance
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Fiserv, Inc. reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings (excluding 64 cents from non-recurring items) per share of $1.56 beat the consensus mark by 1.3% and increased 14% year over year. Adjusted revenues of $4.23 billion beat the consensus estimate by 4.1% and increased 4.5% year over year.
Organic revenue growth was 12% in the quarter, driven by 17% growth in the Acceptance segment, 7% growth in the Fintech segment and 8% growth in the Payments segment.
Shares of Fiserv have declined 14.5% over the past year compared with the 31.8% decrease of the industry it belongs to.
Image Source: Zacks Investment Research
Other Quarterly Details
Processing and services revenues of $3.7 billion increased 10.1% year over year. Product revenues of $754 million were up 9.3% year over year.
Revenues at the Merchant Acceptance segment came in at $1.9 billion, up 14.5% year over year. Revenues at the Financial Technology segment increased 6.5% year over year to $803 million. Revenues at the Payments and Network segment increased 7% year over year to $1.52 billion. Adjusted revenues in the segment increased 6.8% year over year.
Adjusted operating income of $668 million was up 5% from the year-ago quarter’s level. Adjusted operating margin of 43.8% contracted 80 basis points year over year.
Fiserv exited the quarter with cash and cash equivalents of $883 million compared with $863 million at the end of the prior quarter. Long-term debt was $20.9 billion compared with $20.5 billion at the end of the prior quarter. FISV generated $990 million of net cash from operating activities, while free cash flow was $658 million. Capital expenditures were $387 million. FISV repurchased 5.1 million shares for $500 million in the quarter.
2022 Guidance
Adjusted earnings per share are now anticipated in the range of $6.45-$6.55 (prior view: $6.4- $6.55), the midpoint ($6.50) being higher than the Zacks Consensus Estimate of $6.46. FISV now expects organic revenue growth of 9-11% (prior view: 7-9%).
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
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Fiserv (FISV) Beats on Earnings in Q2, Ups 2022 Guidance
Fiserv, Inc. reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings (excluding 64 cents from non-recurring items) per share of $1.56 beat the consensus mark by 1.3% and increased 14% year over year. Adjusted revenues of $4.23 billion beat the consensus estimate by 4.1% and increased 4.5% year over year.
Organic revenue growth was 12% in the quarter, driven by 17% growth in the Acceptance segment, 7% growth in the Fintech segment and 8% growth in the Payments segment.
Shares of Fiserv have declined 14.5% over the past year compared with the 31.8% decrease of the industry it belongs to.
Image Source: Zacks Investment Research
Other Quarterly Details
Processing and services revenues of $3.7 billion increased 10.1% year over year. Product revenues of $754 million were up 9.3% year over year.
Revenues at the Merchant Acceptance segment came in at $1.9 billion, up 14.5% year over year. Revenues at the Financial Technology segment increased 6.5% year over year to $803 million. Revenues at the Payments and Network segment increased 7% year over year to $1.52 billion. Adjusted revenues in the segment increased 6.8% year over year.
Adjusted operating income of $668 million was up 5% from the year-ago quarter’s level. Adjusted operating margin of 43.8% contracted 80 basis points year over year.
Fiserv, Inc. Price, Consensus and EPS Surprise
Fiserv, Inc. price-consensus-eps-surprise-chart | Fiserv, Inc. Quote
Balance Sheet and Cash Flow
Fiserv exited the quarter with cash and cash equivalents of $883 million compared with $863 million at the end of the prior quarter. Long-term debt was $20.9 billion compared with $20.5 billion at the end of the prior quarter.
FISV generated $990 million of net cash from operating activities, while free cash flow was $658 million. Capital expenditures were $387 million. FISV repurchased 5.1 million shares for $500 million in the quarter.
2022 Guidance
Adjusted earnings per share are now anticipated in the range of $6.45-$6.55 (prior view: $6.4- $6.55), the midpoint ($6.50) being higher than the Zacks Consensus Estimate of $6.46. FISV now expects organic revenue growth of 9-11% (prior view: 7-9%).
Currently, Fiserv carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.