Fiserv Offers Earnings Guidance for 2013

Fiserv ($FISV) is in the news today. The company said that it’s buying Open Solutions for $850 million. Fiserv also offered some earnings guidance:

Based on preliminary information, the company anticipates its 2012 adjusted earnings per share to increase approximately 12 percent over 2011. The company also anticipates its 2012 adjusted internal revenue growth to be at 2 percent for the full year.

On a preliminary basis for 2013, the company expects adjusted internal revenue growth of 3 to 4 percent, and 15 to 18 percent adjusted earnings per share growth over 2012.

The company will supply its actual results for 2012, and formal guidance for 2013, in its year end conference call on February 5, 2013.

Let’s run the numbers. In 2011, Fiserv earned $4.58 per share. So 12% earnings growth comes to $5.13 per share for 2012. For the first three quarters of this year they’ve earned $3.75 per share, so working it out, Fiserv expects $1.38 per share for Q4. That’s below Wall Street’s forecast of $1.42 per share.

For 2013, Fiserv’s growth targets translate to earnings of $5.90 to $6.05 per share. The Street had been expecting $5.78 per share. Despite the poor guidance in the short-term, Fiserv has guided Wall Street significantly higher for this year. Still, the stock is currently down about 2.3% in today’s trading. I like this stock a lot and it’s hardly too expensive at less than 14 times this year’s earnings.

Posted by on January 15th, 2013 at 1:11 pm


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