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Fiserv (FISV) Set to Post Q2 Earnings: What's in the Offing?

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Fiserv, Inc. is scheduled to report second-quarter 2022 results on Jul 26, before the opening bell.

Let's check out how things have shaped up for Fiserv prior to the announcement:

Q2 Expectations

The Zacks Consensus Estimate for revenues is pegged at $4.07 billion, indicating growth of 5.5% from the year-ago period’s reported figure. Strength across all segments — Merchant Acceptance, FinTech, and Payments and Network — is likely to have boosted FISV’s top-line growth.

Segment wise, growth in the Merchant Acceptance segment is expected to have been aided by strength across Fiserv’s SMB, Clover and Carat platforms, and the suite of ISV Solutions.

Fiserv, Inc. Price and EPS Surprise

Fiserv, Inc. Price and EPS Surprise

Fiserv, Inc. price-eps-surprise | Fiserv, Inc. Quote

The FinTech segment is expected to have been aided by growing demand for digital banking and digital solution offerings, as well as strength from the addition of core account-processing clients.

The Payments and Network segment is likely to have been aided by strength in FISV’s card services, output solutions and prepaid businesses, including the benefit from debit transactions and growth in Zelle transactions. Solid transaction growth in Fiserv’s account-to-account transfers and P2P solutions is expected to have acted as a tailwind.

The Zacks Consensus Estimate for Fiserv’s second-quarter 2022 earnings is pegged at $1.55 per share, indicating growth of 13.1% year-over-year.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Fiserv this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Fiserv has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on second-quarter 2022 earnings:

Automatic Data Processing, (ADP - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

ADP has an expected earnings growth rate of 16% for the current year. Automatic Data has a trailing four-quarter earnings surprise of 6.2%, on average.

Booz Allen Hamilton Holding Corporation (BAH - Free Report) has an Earnings ESP of +4.41% and a Zacks Rank of 3.

Booz Allen has an expected earnings growth rate of 3.3% for the current year. BAH has a trailing four-quarter earnings surprise of 9.5%, on average.

Avis Budget Group, Inc. (CAR - Free Report) has an Earnings ESP of +22.33% and is Zacks #2 Ranked.

Avis Budget has an expected earnings growth rate of 74.4% for the current year. CAR delivered a trailing four-quarter earnings surprise of 102%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
 

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