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Fiserv's (FISV) Q2 Earnings Match Estimates, Revenues Miss
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Fiserv, Inc. (FI - Free Report) reported disappointing second-quarter 2023 results, wherein earnings matched the Zacks Consensus Estimate while revenues missed the same.
Adjusted earnings per share (excluding 71 cents from non-recurring items) of $1.81 increased 16% year over year, matching the consensus mark. Adjusted revenues of $4.51 billion missed the consensus estimate by 0.4%, increasing 1.3% year over year.
Organic revenue growth was 10% in the quarter, driven by 14% growth and 9% growth in the Acceptance and Payments segments, respectively.
Processing and Services’ revenues of $3.92 billion increased 5.9% year over year, beating our estimates by 1.8%. Revenues in the Product segment were $832 million, up 10.3% year over year.
Revenues from Merchant Acceptance came in at $2.07 billion, 8.9% higher than the year-ago figure. The operating margin was 34.7%, which beat our estimate by 10.1%. The Fintech segment reported revenues of $784 million, indicating 2.4% decline. The Payments segment reported revenues of $1.65 billion, reflecting growth of 8.6%, which compares to our estimates of $1.68 billion.
Balance Sheet and Cash Flow
Fiserv exited the second quarter of 2023 with cash and cash equivalents of $1.05 billion. Long-term debt was $21.9 billion. FISV generated $1.13 billion in 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 to be in the range of $7.4-$7.5, up from the prior guidance of $7.3-$7.4. The Zacks Consensus Estimate of earning is pegged at $7.37 per share, which is lower than the guided range. The company anticipates the earnings per share growth to be in the band of 12-14%. FISV expects revenue growth of 7-9%, of which 14-16% relates to organic growth.
Interpublic Group of Companies’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (considering 6 cents from non-recurring items) came in at 74 cents per share, beating the consensus estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Equifax(EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
ManpowerGroup(MAN - Free Report) reported lower-than-expected results. Second-quarter adjusted earnings of $1.58 per share lagged the Zacks Consensus Estimate by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. The same decreased 3% on a constant-currency basis.
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Fiserv's (FISV) Q2 Earnings Match Estimates, Revenues Miss
Fiserv, Inc. (FI - Free Report) reported disappointing second-quarter 2023 results, wherein earnings matched the Zacks Consensus Estimate while revenues missed the same.
Adjusted earnings per share (excluding 71 cents from non-recurring items) of $1.81 increased 16% year over year, matching the consensus mark. Adjusted revenues of $4.51 billion missed the consensus estimate by 0.4%, increasing 1.3% year over year.
Organic revenue growth was 10% in the quarter, driven by 14% growth and 9% growth in the Acceptance 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 $3.92 billion increased 5.9% year over year, beating our estimates by 1.8%. Revenues in the Product segment were $832 million, up 10.3% year over year.
Revenues from Merchant Acceptance came in at $2.07 billion, 8.9% higher than the year-ago figure. The operating margin was 34.7%, which beat our estimate by 10.1%. The Fintech segment reported revenues of $784 million, indicating 2.4% decline. The Payments segment reported revenues of $1.65 billion, reflecting growth of 8.6%, which compares to our estimates of $1.68 billion.
Balance Sheet and Cash Flow
Fiserv exited the second quarter of 2023 with cash and cash equivalents of $1.05 billion. Long-term debt was $21.9 billion. FISV generated $1.13 billion in 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 to be in the range of $7.4-$7.5, up from the prior guidance of $7.3-$7.4. The Zacks Consensus Estimate of earning is pegged at $7.37 per share, which is lower than the guided range. The company anticipates the earnings per share growth to be in the band of 12-14%. FISV expects revenue growth of 7-9%, of which 14-16% relates to organic growth.
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
Interpublic Group of Companies’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (considering 6 cents from non-recurring items) came in at 74 cents per share, beating the consensus estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Equifax(EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
ManpowerGroup(MAN - Free Report) reported lower-than-expected results. Second-quarter adjusted earnings of $1.58 per share lagged the Zacks Consensus Estimate by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. The same decreased 3% on a constant-currency basis.