Fiserv Earns $1.20 Per Share

After the closing bell, Fiserv ($FISV) reported Q1 earnings of $1.20 per share. That was five cents better than Wall Street’s estimates.

I like this company a lot. They help financial companies with their back office IT operations. Fiserv earned $1.02 in the same quarter last year so that’s pretty good growth. Adjusted revenue rose 5% to $1.03 billion. I was pleased to see the company grow its operating margins by 40 basis points.

“We are off to a great start in 2012 with above plan performance for revenue and earnings per share in the quarter,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “There is continuing evidence that our broad range of technology solutions will support the needs of the evolving financial services market.”

The best news is that Fiserv reaffirmed its full-year guidance of $5.04 to $5.20 per share. That’s a nice increase from the $4.58 per share they made last year. Fiserv also said that it expects revenue to grow by 4% to 6% which is about what the Street was expecting. On the earnings call, the company said it expects free cash flow of $5.70 per share for 2012.

Fiserv’s stock has been on a tear lately. In October, it dipped below $50 and today it got as high as $71.74. Before today’s earnings report, I had some concerns that Fiserv’s stock may have gotten too pricey. Today’s evidence tells us that’s not the case. Using the low end of its range, the stock is going for 14 times earnings which is a good value.

Posted by on May 1st, 2012 at 11:06 pm

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