Fiserv Earned $1.14 per Share

After the closing bell, Fiserv (FISV) reported Q3 earnings of $1.14 per share, one penny more than expectations.

”Strong operating performance in the quarter drove double-digit adjusted earnings per share growth and excellent free cash flow,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “Outstanding sales results in the quarter should provide additional market momentum and growth.”

Here are some highlights:

• Adjusted revenue increased 5 percent in both the third quarter and first nine months to $1.31 billion and $3.86 billion, respectively, compared to the prior year periods.

• Internal revenue growth for the company was 4 percent in the third quarter, driven by 5 percent growth in the Payments segment and 2 percent growth in the Financial segment.

• Internal revenue growth for the company was 4 percent in the first nine months of 2016, led by 6 percent growth in the Payments segment and 1 percent growth in the Financial segment.

• Adjusted earnings per share increased 11 percent in the third quarter to $1.14 and 15 percent in the first nine months of 2016 to $3.28 compared to the prior year periods.

• Adjusted operating margin decreased 30 basis points to 32.8 percent in the quarter and increased 20 basis points to 32.2 percent in the first nine months compared to the prior year periods.

• Free cash flow increased 12 percent to $747 million in the first nine months of 2016 compared to the prior year period.

• Sales performance increased 34 percent in the quarter and 21 percent in the first nine months of 2016 compared to the prior year periods.

• The company repurchased 3.1 million shares of common stock for $329 million in the third quarter and 9.3 million shares of common stock for $933 million in the first nine months of 2016. As of September 30, 2016, the company had 8.1 million remaining shares authorized for repurchase.

For all of 2016, Fiserv expects EPS between $4.43 and $4.46. That means Q4 EPS between $1.15 and $1.18. Wall Street had been expecting $1.16.

“We continue to expect strong operating results despite a slight shortfall in revenue growth for the year. We anticipate revenue growth to accelerate in the fourth quarter and into 2017,” said Yabuki.

Posted by on October 26th, 2016 at 4:09 pm


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