We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fiserv's (FI) Q4 Earnings Surpass Estimates, Revenues Miss
Read MoreHide Full Article
Fiserv, Inc.(FI - Free Report) reported mixed fourth-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the mark.
Adjusted earnings per share (excluding 40 cents from non-recurring items) of $2.19 exceeded the consensus mark by 1.9% and increased 14.7% year over year. Adjusted revenues of $4.64 billion missed the consensus estimate by 1.1% but increased slightly on a year-over-year basis.
Organic revenue growth was 12% in the quarter, driven by 24% and 4% growth in the Acceptance and Payments segments, respectively.
Other Quarterly Details
Processing and services’ revenues of $4.03 billion increased 8.3% year over year and beat our estimate by 1.3%. Revenues in the Product segment were $892 million, down 1.9% from the year-ago figure and missed our estimate by 1.5%.
Revenues from Merchant Acceptance were $2.11 billion, up 13.4% from the year-ago figure, beating our estimate by 7.1%. The Fintech segment reported revenues of $800 million, indicating a 2.8% decline from the year-ago figure and missed our estimated $827.2 million. The Payments segment reported revenues of $1.72 billion, reflecting growth of 3%. The figure compares with our estimated $1.81 billion.
The operating margin from the Merchant acceptance segment was 38.8%, up from the year-ago figure of 34.8%. Adjusted operating margin from the Payments segment was 51% compared with the year-ago figure of 48.5%. Operating margin from the Fintech segment was 37.9%, down from the year-ago 41.3%.
Balance Sheet and Cash Flow
Fiserv exited the fourth quarter of 2023 with cash and cash equivalents of $1.20 billion. Long-term debt was $22.36 billion. FISV generated $1.6 billion in net cash from operating activities while free cash flow was $1.3 billion. Capital expenditures were $354 million. The company repurchased 8.6 million shares for $1 billion in the quarter.
2024 Guidance
Adjusted earnings per share are anticipated to be in the range of $8.55-$8.7 while the Zacks Consensus Estimate of earnings is pegged at $8.58 per share, lower than the midpoint ($8.63) of the guided range. The company anticipates the earnings per share (EPS) growth to be in the band of 14-16%. FI expects total revenues to grow 6.5-8.5% while organic revenues are expected to grow 15-17% year over year.
Adjusted EPS (excluding 40 cents from non-recurring items) of $3.04 beat the Zacks Consensus Estimate by 9.4% but decreased 18% from the year-ago reported figure. Revenues of $1.6 billion beat the consensus estimate by 0.6% and improved 5% year over year on a reported basis and 4% on a foreign-currency-neutral basis.
Total contract value was $4.8 billion, up 8% year over year on a foreign-currency-neutral basis.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected fourth-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Fiserv's (FI) Q4 Earnings Surpass Estimates, Revenues Miss
Fiserv, Inc.(FI - Free Report) reported mixed fourth-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the mark.
Adjusted earnings per share (excluding 40 cents from non-recurring items) of $2.19 exceeded the consensus mark by 1.9% and increased 14.7% year over year. Adjusted revenues of $4.64 billion missed the consensus estimate by 1.1% but increased slightly on a year-over-year basis.
Organic revenue growth was 12% in the quarter, driven by 24% and 4% growth in the Acceptance and Payments segments, respectively.
Other Quarterly Details
Processing and services’ revenues of $4.03 billion increased 8.3% year over year and beat our estimate by 1.3%. Revenues in the Product segment were $892 million, down 1.9% from the year-ago figure and missed our estimate by 1.5%.
Fiserv, Inc. Price, Consensus and EPS Surprise
Fiserv, Inc. price-consensus-eps-surprise-chart | Fiserv, Inc. Quote
Revenues from Merchant Acceptance were $2.11 billion, up 13.4% from the year-ago figure, beating our estimate by 7.1%. The Fintech segment reported revenues of $800 million, indicating a 2.8% decline from the year-ago figure and missed our estimated $827.2 million. The Payments segment reported revenues of $1.72 billion, reflecting growth of 3%. The figure compares with our estimated $1.81 billion.
The operating margin from the Merchant acceptance segment was 38.8%, up from the year-ago figure of 34.8%. Adjusted operating margin from the Payments segment was 51% compared with the year-ago figure of 48.5%. Operating margin from the Fintech segment was 37.9%, down from the year-ago 41.3%.
Balance Sheet and Cash Flow
Fiserv exited the fourth quarter of 2023 with cash and cash equivalents of $1.20 billion. Long-term debt was $22.36 billion. FISV generated $1.6 billion in net cash from operating activities while free cash flow was $1.3 billion. Capital expenditures were $354 million. The company repurchased 8.6 million shares for $1 billion in the quarter.
2024 Guidance
Adjusted earnings per share are anticipated to be in the range of $8.55-$8.7 while the Zacks Consensus Estimate of earnings is pegged at $8.58 per share, lower than the midpoint ($8.63) of the guided range. The company anticipates the earnings per share (EPS) growth to be in the band of 14-16%. FI expects total revenues to grow 6.5-8.5% while organic revenues are expected to grow 15-17% year over year.
Fiserv currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Gartner, Inc. (IT - Free Report) reported better-than-expected fourth-quarter 2023 results.
Adjusted EPS (excluding 40 cents from non-recurring items) of $3.04 beat the Zacks Consensus Estimate by 9.4% but decreased 18% from the year-ago reported figure. Revenues of $1.6 billion beat the consensus estimate by 0.6% and improved 5% year over year on a reported basis and 4% on a foreign-currency-neutral basis.
Total contract value was $4.8 billion, up 8% year over year on a foreign-currency-neutral basis.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected fourth-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.