Fiserv Earns $1.27 Per Share

Not a single mutual fund manger has underperformed the S&P 500 in four days! Fortunately, trading will resume tomorrow morning. But the earnings parade continues.

After the bell, Fiserv ($FISV) reported Q3 earnings of $1.27 per share which matched estimates. The company describes itself as “a leading global technology provider serving the financial services industry, driving innovation in payments, processing services, risk and compliance, customer and channel management, and business insights and optimization.” Fiserv reiterated its full-year forecast of earnings growth of 11% to 14% which comes to $5.05 to $5.20 per share.

Here are some highlights from the quarter:

• Adjusted revenue grew 5 percent in the quarter to $1.05 billion and increased 4 percent in the first nine months of 2012 to $3.11 billion, compared to the respective prior year periods.

• Adjusted internal revenue growth was 4 percent in the quarter, consisting of 2 percent growth in the Payments segment and 5 percent growth in the Financial segment. Adjusted internal revenue growth for the first nine months of 2012 was 3 percent, including 2 percent growth in the Payments segment and 3 percent growth in the Financial segment.

• Adjusted operating margin was 29.8 percent in the quarter, an increase of 80 basis points compared to the prior year’s quarter, and was up 40 basis points to 29.3 percent for the first nine months of 2012 compared to the prior year.

• Adjusted earnings per share in the quarter increased 9 percent to $1.27 and increased 13 percent in the first nine months of 2012 to $3.75, compared to the respective prior year periods.

• Free cash flow was up 18 percent in the quarter and was $501 million for the first nine months of 2012 compared with $507 million in the prior year period.

• The company repurchased 2.7 million shares of common stock in the third quarter for $189 million and, through the end of the third quarter, has repurchased 8.5 million shares for $577 million. As of September 30, 2012, the company had approximately 6 million shares remaining under its existing share repurchase authorization.

Posted by on October 30th, 2012 at 4:50 pm


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.

Tickers: