Fiserv, Inc. ( reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. FISV Quick Quote FISV - Free Report)
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.
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 ( reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same. EFX Quick Quote EFX - Free Report)
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