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Fiserv (FISV) to Post Q1 Earnings: What's in the Cards?

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Fiserv, Inc. is scheduled to release its first-quarter 2023 results on Apr 25, before market open.

The company has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. The average surprise was 0.2%.

The Zacks Consensus Estimate for EPS is pegged at $1.56, indicating growth of 11.4% year over year.

Fiserv, Inc. Price and EPS Surprise

Fiserv, Inc. Price and EPS Surprise

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

Q1 Expectations

The consensus estimate for the top line is currently pegged at $4.16 billion, up 6.5% from the year-ago actual figure. The uptick is likely to have been driven by steady organic growth, higher processing revenues and increased product sale across its Merchant Acceptance and Payments and Networks segments. Our estimate indicates revenue growth of 4.8% year over year.

Segmental Information

The Zacks Consensus Estimate for Merchant Acceptance segment revenues in the to-be-reported quarter is pegged at $1.78 billion, indicating 7.7% year-over-year growth. Diligent acquisitions and their synergies are the likely enablers of such growth.

The Zacks Consensus Estimate for revenues generated from the Payment and Networks segment is pegged at $1.59 billion, indicating a year-over-year increase of 8%, expectedly benefiting from new client wins and some strategic acquisitions.

Revenues generated from the Processing and Services segment is expected to grow 8.7% from the year-ago reported figure. The Zacks Consensus Estimate for the same is pegged at $3.66 billion.

Increasing interest expenses are likely to have a slight impact on the company’s bottom line. The consensus mark for the bottom line is pegged at $1.56, which has been revised slightly upward in the past 60 days. Our estimate indicates an increase of 9.9% year over year.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for FISV 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 #2.

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 Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Waste Connections (WCN - Free Report) currently has an Earnings ESP of +1.93% and a Zacks Rank of 3. It is scheduled to report its first-quarter 2023 results on Apr 26, after market close.

The ZacksConsensus Estimate for the bottom line is pegged at 88 cents per share, up 7.3% from the year-ago figure. The consensus mark for revenues is pegged at $1.9 billion, up 15.4% from the figure reported a year ago. WCN had an average surprise of 3.53% in the previous four quarters.

Waste Management (WM - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 3. It is scheduled to report its first-quarter 2023 results on Apr 26, after market close.

The Zacks Consensus Estimate for earnings is pegged at $1.26 per share, down 2.3% from the year-ago figure. The consensus mark for revenues is pegged at $4.84 billion, up 3.9% from the prior-year figure. WM had an average surprise of 4.7% in the previous four quarters.

Aptiv (APTV - Free Report) currently has an Earnings ESP of +4.29% and a Zacks Rank of 3. It is scheduled to report its first-quarter 2023 results on May 4, before market open.

The Zacks Consensus Estimate for the bottom line is pegged at 86 cents per share, up 36.5% from the year-ago reported figure. The consensus mark for revenues is pegged at $4.51 billion, up 7.9% from the prior-year reported figure. APTV had a negative surprise of 8.7%, on average, in the previous four quarters.

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