Fiserv Earns $1.37 per Share Crossing Wall Street

Fiserv Earns $1.37 per Share

We had two more Buy List earnings reports this morning. First up is Fiserv (FISV). The payments company reported Q2 earnings of $1.37 per share. That topped Wall Street’s consensus by nine cents per share, and it was up 47% over last year’s Q2. I was very impressed by these numbers.

Quarterly revenue increased 20% to $3.86 billion. Internal revenue growth was 18%. That was led by 41% growth in the Acceptance segment, 5% in the Fintech and 7% in Payments.

“We had a very strong quarter driven by both macroeconomic tailwinds and the execution of our business strategy focused on winning business with new and existing clients,” said Frank Bisignano, President and Chief Executive Officer of Fiserv. “Our assets and continued innovation position us well to grow faster with financial institutions, fintechs and businesses of all sizes.”

For the first six months of this year, Fiserv earned $2.54 per share. That’s up 32% so far this year. Some more details from the earnings report:

Adjusted operating margin increased 510 basis points to 33.9% in the second quarter and 440 basis points to 32.7% in the first six months of 2021 compared to the prior year periods.

Free cash flow increased by 4% to $1.72 billion in the first six months of 2021 compared to $1.66 billion in the prior year period.

The company repurchased 5.0 million shares of common stock for $588 million in the second quarter and 10.2 million shares of common stock for $1.20 billion in the first six months of 2021.

Now for the best news. Fiserv increased its full-year guidance. The company now expects full-year earnings between $5.50 and $5.60 per share. The previous range was $5.35 to $5.50 per share. That’s growth of 24% to 27%. Fiserv also bumped up the low end of its estimate for internal revenue growth by 1%. The new range is 10% to 12%.

“Given our strong financial results in the first half of the year, coupled with our continued business execution, we are again raising our internal revenue growth outlook as well as our overall adjusted EPS outlook,” said Bisignano. “Our agility, speed of implementation and new product launches should continue to accelerate our growth.”

The stock has been up as much as 4.8% today.

Posted by Eddy Elfenbein on July 27th, 2021 at 10:05 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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