Fiserv posts strong 3Q earnings, raises FY23 guidance
Published: 10:39 24 Oct 2023 EDT
Fiserv Inc (NASDAQ:FISV) reported strong 3Q earnings boosted by robust growth across all three of its major businesses.
The fintech firm’s expenses declined during the quarter after improved margins and a lower tax rate helped to boost the bottom line.
Adjusted earnings per share (EPS) of $1.96 came in higher than the $1.93 consensus and above the $1.63 in the comparable year-ago quarter.
As well, adjusted revenue of $4.62 billion versus $4.60 billion consensus climbed from $4.51 billion in the previous quarter and $4.52 billion in the year-ago period.
The company now expects 2023 adjusted EPS of $7.47-$7.52 compared with the $7.42 consensus and its previous guidance of $7.40-$7.50.
Fiserv is also forecasting organic revenue growth of 11% compared with its previous view of 9%-11% growth for the 2023 year.
Analysts at Jefferies noted that the updated full-year guidance suggests that the company's anticipated fourth-quarter adjusted revenue is approximately 2% below market expectations, while its projected earnings per share (EPS) for the same quarter are around 1% higher than the Street's estimates.
Based on robust 7% year-over-year adjusted revenue growth for the fiscal year, the estimated 4Q adjusted revenue is approximately $4.55 billion, indicating a slight underperformance compared to the Street's forecasts.
Shares of Fiserv were up 4.3% in midmorning trading at $114.30.
