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Fiserv's (FISV) Q1 Earnings and Revenues Surpass Estimates
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Fiserv, Inc. reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.7%.
Organic revenue growth was 13% in the quarter, driven by growth of 18%, 3% and 13% in the Acceptance, Fintech and Payments segments, respectively.
Processing and services’ revenues of $3.7 billion increased 9.2% year over year. Revenues for the Product segment were $874 million, up 12.92% year over year.
Revenues for the Merchant Acceptance, Financial Technology and Payments and Network segments were $1.85 billion, $792 million and $1.63 billion, up 12.1%, 18% and 11.4%, respectively, year over year. Adjusted revenues for the Payments and Network segment increased 11.3% year over year.
Adjusted operating income of $1.44 billion was up 15.2% from the year-ago quarter’s level. Adjusted operating margin of 33.6% expanded 160 basis points year over year.
Balance Sheet and Cash Flow
Fiserv exited the first quarter of 2023 with cash and cash equivalents of $1.05 billion. Long-term debt was $21.9 billion. FISV generated $1.13 billion of net cash from operating activities, while free cash flow was $861 million. Capital expenditures were $339 million. The company repurchased 13.3 million shares for $1.5 billion in the quarter.
2023 Guidance
Adjusted earnings per share are anticipated in the range of $7.3-$7.4. The Zacks Consensus Estimate for earnings is pegged at $7.32, lower than the midpoint of the guided range ($7.35). The company anticipates the EPS growth to be in the band of 12-14%. FISV expects organic revenue growth of 8-9%.
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
ManpowerGroup (MAN - Free Report) reported lower-than-expected first-quarter 2023 results. First-quarter adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. The bottom line declined 14.4% year over year, impacted by restructuring costs and foreign currency fluctuations. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year on a reported basis. Revenues decreased 2.2% on a constant-currency (cc) basis.
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Fiserv's (FISV) Q1 Earnings and Revenues Surpass Estimates
Fiserv, Inc. reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.7%.
Organic revenue growth was 13% in the quarter, driven by growth of 18%, 3% and 13% in the Acceptance, Fintech and Payments segments, respectively.
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 9.2% year over year. Revenues for the Product segment were $874 million, up 12.92% year over year.
Revenues for the Merchant Acceptance, Financial Technology and Payments and Network segments were $1.85 billion, $792 million and $1.63 billion, up 12.1%, 18% and 11.4%, respectively, year over year. Adjusted revenues for the Payments and Network segment increased 11.3% year over year.
Adjusted operating income of $1.44 billion was up 15.2% from the year-ago quarter’s level. Adjusted operating margin of 33.6% expanded 160 basis points year over year.
Balance Sheet and Cash Flow
Fiserv exited the first quarter of 2023 with cash and cash equivalents of $1.05 billion. Long-term debt was $21.9 billion. FISV generated $1.13 billion of net cash from operating activities, while free cash flow was $861 million. Capital expenditures were $339 million. The company repurchased 13.3 million shares for $1.5 billion in the quarter.
2023 Guidance
Adjusted earnings per share are anticipated in the range of $7.3-$7.4. The Zacks Consensus Estimate for earnings is pegged at $7.32, lower than the midpoint of the guided range ($7.35). The company anticipates the EPS growth to be in the band of 12-14%. FISV expects organic revenue growth of 8-9%.
Fiserv currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
ManpowerGroup (MAN - Free Report) reported lower-than-expected first-quarter 2023 results. First-quarter adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. The bottom line declined 14.4% year over year, impacted by restructuring costs and foreign currency fluctuations. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year on a reported basis. Revenues decreased 2.2% on a constant-currency (cc) basis.