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What's in the Cards for Fiserv (FISV) This Earnings Season?
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Fiserv Inc. is set to report fourth-quarter 2017 results on Feb 7. The company beat the Zacks Consensus Estimate in one of the trailing quarters and matched it once, delivering an average positive surprise of 0.09%.
Last quarter, adjusted earnings of $1.27 per share missed the Zacks Consensus Estimate of $1.30. However, it improved 11.4% from the year-ago quarter.
Total revenue increased 1.4% year over year to $1.40 billion but missed the Zacks Consensus Estimate of $1.45 billion. Adjusted revenues grew 2% year over year to $1.34 billion.
Notably, shares of Fiserv have gained 28.7% year to date, significantly underperforming the industry’s 39.9% rally.
Let's see how things are shaping up for this announcement.
Key Factors
Fiserv holds a dominant position in the financial and payment solutions business. We believe an expanding product portfolio coupled with steady flow of customers will drive top-line growth.
Fiserv is witnessing an increase in the adoption of DNA as well as other digital banking solutions among banks and credit unions. Notably, the number of signed DNA clients totaled 20 after the addition of nine clients to the platform in third-quarter 2017. The company’s Zelle solution is also gaining traction.
Investment in digital-oriented technologies is improving its competitiveness. The acquisitions of Monitise, PCLender and Dovetail Group in the third quarter are expected to further enhance its clientele in the United States as well as in the international markets.
Management expects EMV revenues to increase in the fourth quarter. The company is also optimistic about earning the delayed periodic revenues of third quarter, which is expected to expand margins.
However, increasing regulations in the banking and financial services industry and intensifying competition from the likes of Fidelity National Information Services Inc. (FIS - Free Report) remain concerns. Given the attractive prospects in the financial services market, there are always new entrants who seek to leverage on shifts in technology or product innovation to attract customers.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. . The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Fiserv has a Zacks Rank #3 and its Earnings ESP is +0.06%. Therefore, the company is likely to deliver a positive surprise this quarter.
Here are a couple of companies which, as per our model, have the right combination of elements to post an earnings beat this quarter:
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +6.87% and a Zacks Rank of 2.
Vishay Intertechnology Inc. (VSH - Free Report) , with an Earnings ESP of +6.19% and a Zacks Rank of 2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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What's in the Cards for Fiserv (FISV) This Earnings Season?
Fiserv Inc. is set to report fourth-quarter 2017 results on Feb 7. The company beat the Zacks Consensus Estimate in one of the trailing quarters and matched it once, delivering an average positive surprise of 0.09%.
Last quarter, adjusted earnings of $1.27 per share missed the Zacks Consensus Estimate of $1.30. However, it improved 11.4% from the year-ago quarter.
Total revenue increased 1.4% year over year to $1.40 billion but missed the Zacks Consensus Estimate of $1.45 billion. Adjusted revenues grew 2% year over year to $1.34 billion.
Notably, shares of Fiserv have gained 28.7% year to date, significantly underperforming the industry’s 39.9% rally.
Let's see how things are shaping up for this announcement.
Key Factors
Fiserv holds a dominant position in the financial and payment solutions business. We believe an expanding product portfolio coupled with steady flow of customers will drive top-line growth.
Fiserv is witnessing an increase in the adoption of DNA as well as other digital banking solutions among banks and credit unions. Notably, the number of signed DNA clients totaled 20 after the addition of nine clients to the platform in third-quarter 2017. The company’s Zelle solution is also gaining traction.
Investment in digital-oriented technologies is improving its competitiveness. The acquisitions of Monitise, PCLender and Dovetail Group in the third quarter are expected to further enhance its clientele in the United States as well as in the international markets.
Management expects EMV revenues to increase in the fourth quarter. The company is also optimistic about earning the delayed periodic revenues of third quarter, which is expected to expand margins.
However, increasing regulations in the banking and financial services industry and intensifying competition from the likes of Fidelity National Information Services Inc. (FIS - Free Report) remain concerns. Given the attractive prospects in the financial services market, there are always new entrants who seek to leverage on shifts in technology or product innovation to attract customers.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. . The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Fiserv has a Zacks Rank #3 and its Earnings ESP is +0.06%. Therefore, the company is likely to deliver a positive surprise this quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Fiserv, Inc. Price and EPS Surprise
Fiserv, Inc. Price and EPS Surprise | Fiserv, Inc. Quote
Some Other Stocks With a Favorable Combination
Here are a couple of companies which, as per our model, have the right combination of elements to post an earnings beat this quarter:
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +6.87% and a Zacks Rank of 2.
Vishay Intertechnology Inc. (VSH - Free Report) , with an Earnings ESP of +6.19% and a Zacks Rank of 2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>