Fiserv’s First-Quarter Earnings Send Shares Up 3.6% From Investing.com

MILWAUKEE – Fiserv, Inc. (NYSE: FI), a leading global provider of technology solutions for payments and financial services, reported a strong first quarter for 2024, with adjusted earnings per share (EPS) exceeding industry expectations. analysts. The company’s shares rose 3.6% following the announcement.

For the first quarter of 2024, Fiserv reported adjusted EPS of $1.88, beating analysts’ estimates of $1.79. This figure marks an increase of 19% compared to the same period of the previous year. GAAP revenue rose 7% to $4.88 billion, while adjusted revenue also rose 7% to $4.54 billion. However, this figure narrowly missed consensus estimates of $4.57 billion.

Organic revenue growth was particularly strong, with a 20% increase led by the Merchant Solutions segment, which grew 36%. The Financial Solutions segment also contributed with growth of 5%. The company’s GAAP operating margin improved to 24.2%, compared to 20.5% in the first quarter of 2023. Adjusted operating margin increased 180 basis points to 35.8%.

Frank Bisignano, president and CEO of Fiserv, attributed the strong quarter to the company’s resilient business model, productivity improvements, innovative product and service offerings, and effective cross-selling strategies.

Looking ahead, Fiserv raised its full-year 2024 adjusted EPS forecast to a range of $8.60 to $8.75, representing growth of 14% to 16%. The guidance update is in line with analysts’ consensus, which stands at $8.63. The company reiterated its commitment to a cycle of investment, revenue growth, operating leverage and capital return, underscoring its customer focus, operational excellence and a strong balance sheet.

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The company’s stock repurchase program also remained active, with 10.2 million shares repurchased for $1.5 billion in the first quarter. Additionally, Fiserv completed a $2.0 billion public offering of senior notes.

Fiserv’s continued recognition as an innovative company was highlighted by its inclusion on Fortune’s list of America’s Most Innovative Companies for the second consecutive year and by Clover’s award for Best Overall Commerce Platform in the 2024 Annual FinTech Breakthrough Awards .

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