Fiserv Earned $1.19 per Share for Q2

For Q2, Fiserv (FISV) reported earnings of $1.19 per share. That was four cents below Wall Street’s estimate. The company didn’t give guidance for Q2, but their full-year guidance is unchanged at $5.03 to $5.17 per share. Quarterly revenue rose 2% to $1.39 billion.

“We delivered solid financial results in the quarter consistent with our expectations,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “Our focus on client success continues to drive market momentum.”

More details:

Adjusted earnings per share increased 10 percent in the second quarter to $1.19 and increased 14 percent in the first six months of 2017 to $2.43 compared to the prior year periods.

Adjusted operating margin increased 10 basis points to 32.0 percent in the second quarter and expanded 40 basis points to 32.3 percent in the first six months of 2017 compared to the prior year periods.

Free cash flow increased 26 percent to $555 million in the first six months of 2017 compared to the prior year period. A cash distribution from StoneRiver of $31 million related to the sale of a business has been excluded from the company’s free cash flow results for the first six months of 2017.

The company repurchased 2.5 million shares of common stock for $295 million in the second quarter and 5.9 million shares of common stock for $684 million in the first six months of 2017. As of June 30, 2017, the company had 14.6 million remaining shares authorized for repurchase.

In June 2017, the company made a recommended cash offer to acquire Monitise plc for approximately £70 million ($89 million). The transaction is subject to certain conditions including Monitise shareholder approval (full details of the offer can be found on our website, Fiserv.com).

Fiserv reiterated their 2017 guidance of $5.03 to $5.17 per share. That’s an increase of 14% to 17% over last year’s total of $4.43.

“We remain on-track to achieve our full-year financial objectives which anticipate stronger results in the second half of the year,” said Yabuki.

This is a rare earnings miss for Fiserv, but the important thing is that their guidance is the same.

Posted by on August 1st, 2017 at 4:08 pm


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