Fiserv Inc. Earnings: Four Quarters in a Row of Declining Profit Now Snapped

S&P 500 (NYSE:SPY) component Fiserv Inc. (NASDAQ:FISV) reported its results for the fourth quarter. Fiserv provides information management and electronic commerce systems for the financial services industry.

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Fiserv Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Fiserv Inc. rose to $143 million ($1.01 per share) vs. $116 million (78 cents per share) in the same quarter a year earlier. This marks a rise of 23.3% from the year earlier quarter.

Revenue: Rose 7.7% to $1.16 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Fiserv Inc. reported adjusted net income of $1.27 per share. By that measure, the company fell in line with the mean estimate of $1.27 per share. It beat the average revenue estimate of $1.13 billion.

Quoting Management: “Revenue growth in the quarter was at its highest level in more than three years leading to our 26th consecutive year of double-digit adjusted EPS growth,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “Our market leading solutions have us well positioned to capitalize on important trends in the financial services industry.”

Key Stats:

Last quarter’s profit increase breaks a streak of four consecutive quarters of year-over-year profit drops. In the third quarter, net income fell 3.8% from the year earlier, while the figure fell 29.1% in the second quarter, 7.4% in the first quarter and 1.7% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 3.7% to $1.06 billion in the third quarter. The figure rose 4.2% in the second quarter from the year earlier and climbed 4% in the first quarter from the year-ago quarter.

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the third quarter, it topped the mark by 2 cents, and in the second quarter, it was ahead by 5 cents.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from $1.15 a share to $1.16 over the last ninety days. For the fiscal year, the average estimate has moved up from $4.57 a share to $4.58 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com