Fiserv Earnings: Here’s Why Investors are Ambivalent Now

Fiserv, Inc. (NASDAQ:FISV) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Fiserv, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.19% to $1.5 in the quarter versus EPS of $1.28 in the year-earlier quarter.

Revenue: Rose 3.64% to $1.14 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fiserv, Inc. reported adjusted EPS income of $1.5 per share. By that measure, the company beat the mean analyst estimate of $1.44. It missed the average revenue estimate of $1.2 billion.

Quoting Management: “Our strong second quarter results included revenue and earnings acceleration in-line with our full-year expectations,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “Performance was led by 7 percent adjusted internal revenue growth in our Payments segment, solid sales and excellent free cash flow.”

Key Stats (on next page)…

Revenue decreased 1.04% from $1.15 billion in the previous quarter. EPS increased 12.78% from $1.33 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.52 to a profit $1.51. For the current year, the average estimate has moved down from a profit of $5.95 to a profit of $5.93 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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