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Fiserv, Inc. reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.4 beat the consensus mark by 3.7% and increased 19.7% year over year. Adjusted revenues of $3.9 billion beat the consensus estimate by 1.8% and increased 9.8% year over year.
Organic revenue growth was 11% in the quarter, driven by 20% growth in the Acceptance segment, 6% growth in the Fintech segment and 5% growth in the Payments segment.
Shares of Fiserv have declined 21% over the past year compared with 35.4% loss of the industry it belongs to.
Other Quarterly Details
Processing and services revenues of $3.4 billion increased 10.2% year over year. Product revenues of $774 million were up 10.4% year over year.
Revenues at the Merchant Acceptance segment came in at $1.7 billion, up 18.3% year over year. Revenues at the Financial Technology segment increased 5.7% year over year to $778 million. Revenues at the Payments and Network segment increased 4% year over year to $1.5 billion. Adjusted revenues in the segment increased 4% year over year.
Adjusted operating income of $1.2 billion was up 11.8% from the year-ago quarter. Adjusted operating margin of 32% increased 60 basis points year over.
Balance Sheet and Cash Flow
Fiserv exited the quarter with cash and cash equivalents of $863 million compared with $835 million at the end of the prior quarter. Long-term debt was $20.5 billion compared with $20.7 billion at the end of the prior quarter.
The company generated $815 million of net cash from operating activities while free cash flow was $603 million. Capital expenditures were $331 million. The company repurchased 5.1 million shares for $500 million in the quarter.
2022 Guidance
Adjusted earnings per share are anticipated in the range of $6.4 to $6.55, the midpoint ($6.48) of which is higher than the Zacks Consensus Estimate of $6.44. The company expects organic revenue growth of 7-9%.
ManpowerGroup’s quarterly results beat estimates on both counts. Adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year.
MAN’s revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year.
Omnicom reported earnings of $1.39 per share that beat the consensus mark by 8.6% and increased 4.5% year over year.
OMC’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax adjusted earnings of $2.22 per share that beat the consensus estimate by 3.3% and improved 13% on a year-over-year basis.
EFX’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year.
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Fiserv's (FISV) Q1 Earnings Beat Estimates, Increase Y/Y
Fiserv, Inc. reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.4 beat the consensus mark by 3.7% and increased 19.7% year over year. Adjusted revenues of $3.9 billion beat the consensus estimate by 1.8% and increased 9.8% year over year.
Organic revenue growth was 11% in the quarter, driven by 20% growth in the Acceptance segment, 6% growth in the Fintech segment and 5% growth in the Payments segment.
Shares of Fiserv have declined 21% over the past year compared with 35.4% loss of the industry it belongs to.
Other Quarterly Details
Processing and services revenues of $3.4 billion increased 10.2% year over year. Product revenues of $774 million were up 10.4% year over year.
Revenues at the Merchant Acceptance segment came in at $1.7 billion, up 18.3% year over year. Revenues at the Financial Technology segment increased 5.7% year over year to $778 million. Revenues at the Payments and Network segment increased 4% year over year to $1.5 billion. Adjusted revenues in the segment increased 4% year over year.
Adjusted operating income of $1.2 billion was up 11.8% from the year-ago quarter. Adjusted operating margin of 32% increased 60 basis points year over.
Balance Sheet and Cash Flow
Fiserv exited the quarter with cash and cash equivalents of $863 million compared with $835 million at the end of the prior quarter. Long-term debt was $20.5 billion compared with $20.7 billion at the end of the prior quarter.
The company generated $815 million of net cash from operating activities while free cash flow was $603 million. Capital expenditures were $331 million. The company repurchased 5.1 million shares for $500 million in the quarter.
2022 Guidance
Adjusted earnings per share are anticipated in the range of $6.4 to $6.55, the midpoint ($6.48) of which is higher than the Zacks Consensus Estimate of $6.44. The company expects organic revenue growth of 7-9%.
Currently, Fiserv carries a Zacks Rank #3 (Hold).
Fiserv, Inc. Price, Consensus and EPS Surprise
Fiserv, Inc. price-consensus-eps-surprise-chart | Fiserv, Inc. Quote
Earnings Snapshot
Within the broader Business Services sector, ManpowerGroup Inc. (MAN - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Equifax Inc. (EFX - Free Report) recently reported first-quarter 2022 results.
ManpowerGroup’s quarterly results beat estimates on both counts. Adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year.
MAN’s revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year.
Omnicom reported earnings of $1.39 per share that beat the consensus mark by 8.6% and increased 4.5% year over year.
OMC’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax adjusted earnings of $2.22 per share that beat the consensus estimate by 3.3% and improved 13% on a year-over-year basis.
EFX’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year.