- Fiserv (NASDAQ: FISV) reported an earnings per share (EPS) of $1.79, surpassing analyst estimates, though revenue of $4.68 billion fell short of expectations.
- Despite the earnings beat, the company experienced shrinking profit margins, with the Merchant Solutions segment falling from 34% to 26% and Financial Solutions from 47.5% to 38%.
- The financial technology giant reaffirmed its full-year guidance, projecting organic revenue growth between 1% and 3% and an adjusted EPS between $8.00 and $8.30, with a debt-to-equity ratio of 1.11.
Fiserv is a global financial technology company. It provides payment processing and financial services to banks, businesses, and consumers. Its main activities include processing transactions for merchants and providing core banking software. Key competitors in the payments space include Block (NYSE: SQ) and PayPal (NASDAQ: PYPL).
For the quarter, Fiserv reported an earnings per share (EPS) of $1.79. This figure surpassed the consensus analyst estimate of $1.57. Earnings per share represents the company’s profit allocated to each outstanding share of common stock, indicating profitability on a per-share basis.
The company’s revenue came in at $4.68 billion, missing the consensus estimate of $4.73 billion. As highlighted by Zacks, this is also down from the $4.79 billion in revenue from the same quarter last year. Organic revenue, which excludes impacts from acquisitions or currency changes, declined by 4%.
Despite the earnings beat, other metrics show signs of weakness. As highlighted by Seeking Alpha, Fiserv experienced shrinking profit margins. The Merchant Solutions segment saw its margin fall from approximately 34% to 26%, while the Financial Solutions segment’s margin dropped from 47.5% to 38%.
Looking ahead, Fiserv reaffirmed its full-year guidance. The company projects organic revenue growth between 1% and 3% and an adjusted EPS between $8.00 and $8.30. The company’s debt-to-equity ratio stands at 1.11, indicating it uses a mix of debt and equity to finance its operations.
