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Fiserv (FISV) Q4 Earnings Meet Estimates, Increase Y/Y

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Fiserv, Inc.’s fourth-quarter 2022 earnings meet the Zacks Consensus Estimate while revenues beat the same.

Adjusted earnings per share (excluding 68 cents from non-recurring items) of $1.91 increased 21.7% year over year. Adjusted revenues of $4.36 billion beat the Zacks Consensus Estimate by 0.8% and increased 2.4% year over year.

Organic revenue growth was 12% in the quarter, driven by 16%, 8% and 10% growth in the Acceptance, Fintech and Payments segments, respectively.

Fiserv, Inc. Price, Consensus and EPS Surprise

Fiserv, Inc. Price, Consensus and EPS Surprise

Fiserv, Inc. price-consensus-eps-surprise-chart | Fiserv, Inc. Quote

Other Quarterly Details

Processing and services’ revenues of $3.7 billion increased 6.9% year over year. Revenues in Product segment were $909 million, up 17.7% year over year.

Revenues in Merchant Acceptance, Financial Technology and Payments and Network segments were $1.86 billion, $823 million and $1.67 billion, up 9.4%, 6.7% and 8.4%, respectively, year over year. Adjusted revenues in Payments and Network segment increased 8.4% year over year.

Adjusted operating income of $811 million was up 13.7% from the year-ago quarter’s level. Adjusted operating margin of 48.5% expanded 230 basis points year over year.

Balance Sheet and Cash Flow

Fiserv exited the quarter with cash and cash equivalents of $902 million compared with $893 million at the end of the prior quarter. Long-term debt was $21 billion compared with $20.8 billion at the end of the prior quarter.

FISV generated $1633 million of net cash from operating activities, while free cash flow was $1405 million. Capital expenditures were $331 million. The company repurchased 7.6 million shares for $750 million in the quarter.

2023 Guidance

Adjusted earnings per share are anticipated in the range of $7.25-$7.40. The Zacks Consensus Estimate is pegged lower at $6.49. FISV expects organic revenue growth of 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.

Earnings Snapshots

Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.

Quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.

Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.

Adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter’s reading. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter’s reading on a reported basis and 10% on an organic constant-currency basis.

Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the respective Zacks Consensus Estimate. Quarterly adjusted earnings (excluding 84 cents from non-recurring items) per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.

Total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.


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