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The Zacks Consensus Estimate for revenues is pegged at $4.27 billion, indicating growth of 7.7% from the year-ago period’s reported figure. Strength across all segments, namely 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.
The FinTech segment is expected to have been aided by growing demand for digital banking and digital solution offerings (including CardHub and SpendTrack) 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 the North American credit processing business, the output solutions business and debit networks (STAR, Accel and Zelle), led by a higher number of clients and transaction growth. Overall, this growth is likely to have been driven by both new business onboarding and a favorable credit environment.
The Zacks Consensus Estimate for Fiserv’s third-quarter 2022 earnings is pegged at $1.70 per share, indicating growth of 15.7% from the prior-year quarter’s reported figure.
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 as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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 earnings this season:
Gartner, Inc. (IT - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3.
IT has an expected revenue growth rate of 13.7% and 10.3% for the current and next year, respectively. Gartner has a trailing four-quarter earnings surprise of 25.3%, on average.
Trane Technologies plc (TT - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank of 3.
Trane Technologies has an expected earnings growth rate of 16.3% for the current year. TT has a trailing four-quarter earnings surprise of 3.9%, on average.
Riot Blockchain (RIOT - Free Report) has an Earnings ESP of +125.49% and is Zacks #3 Ranked.
Riot has an expected revenue growth rate of 41.2% for the current year and 69.1% for next year.
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Fiserv (FISV) to Post Q3 Earnings: What's in the Cards?
Fiserv, Inc. is scheduled to report third-quarter 2022 results on Oct 27, before the opening bell.
Let's check out how things have shaped up for Fiserv prior to the announcement:
Fiserv, Inc. Price and EPS Surprise
Fiserv, Inc. price-eps-surprise | Fiserv, Inc. Quote
Q3 Expectations
The Zacks Consensus Estimate for revenues is pegged at $4.27 billion, indicating growth of 7.7% from the year-ago period’s reported figure. Strength across all segments, namely 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.
The FinTech segment is expected to have been aided by growing demand for digital banking and digital solution offerings (including CardHub and SpendTrack) 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 the North American credit processing business, the output solutions business and debit networks (STAR, Accel and Zelle), led by a higher number of clients and transaction growth. Overall, this growth is likely to have been driven by both new business onboarding and a favorable credit environment.
The Zacks Consensus Estimate for Fiserv’s third-quarter 2022 earnings is pegged at $1.70 per share, indicating growth of 15.7% from the prior-year quarter’s reported figure.
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 as elaborated below. 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 -0.64% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
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 earnings this season:
Gartner, Inc. (IT - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3.
IT has an expected revenue growth rate of 13.7% and 10.3% for the current and next year, respectively. Gartner has a trailing four-quarter earnings surprise of 25.3%, on average.
Trane Technologies plc (TT - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank of 3.
Trane Technologies has an expected earnings growth rate of 16.3% for the current year. TT has a trailing four-quarter earnings surprise of 3.9%, on average.
Riot Blockchain (RIOT - Free Report) has an Earnings ESP of +125.49% and is Zacks #3 Ranked.
Riot has an expected revenue growth rate of 41.2% for the current year and 69.1% for next year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.