News

Fiserv, Inc. FI has reported mixed first-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the mark.

FI’s adjusted earnings per share (excluding 65 cents from non-recurring items) of $1.9 beat the consensus mark by 6.2% and increased 19% year over year. Adjusted revenues of $4.5 billion missed the consensus estimate by a slight margin and decreased slightly on a year-over-year basis.

Fiserv, Inc. Price and EPS Surprise

Other Quarterly Details

Processing and services’ revenues of $4 billion increased 8.3% year over year and met our estimate of $4 billion. Revenues in the Product segment were $883 million, up 1% from the year-ago quarter and missing our estimate of $888.9 million.

Revenues from Merchant Acceptance were $2.3 billion, up 12.9% from the year-ago figure, beating our estimate of $2 billion. The Financial Solutions segment reported revenues of $2.3 billion, a 2.8% increase from the year-ago figure and missing our estimate of $2.6 billion.

The adjusted operating margin for the Merchant acceptance segment was 35.8%, up from the year-ago figure of 34%. The adjusted operating margin for the Financial Solutions segment was 44.1% compared with the year-ago figure of 42.5%.

Balance Sheet & Cash Flow

Fiserv exited the first quarter of 2024 with cash and cash equivalents of $1.2 billion. The long-term debt was $23.8 billion. FI generated $831 million in net cash from operating activities, whereas its free cash flow was $454 million. Capital expenditure was $420 million. The company repurchased 10.2 million shares for $1.5 billion in the quarter.

2024 Guidance

Adjusted earnings per share are anticipated to be $8.6-$8.75 compared with $8.55-$8.7 previously. The Zacks Consensus Estimate of earnings is pegged at $8.63 per share, lower than the mid-point ($8.68) of the company’s guided range. Fiserv anticipates earnings per share growth of 14-16%. FI expects total revenues to grow 6.5-8.5% year over year, whereas organic revenues are anticipated to rise 15-17%.

Fiserv currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Equifax Inc. EFX reported mixed first-quarter 2024 results.

EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.

Omnicom Group Inc. OMC reported impressive first-quarter 2024 results.

OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.