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Fiserv (FI) to Report Q2 Earnings: What's in the Offing?

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Fiserv, Inc. (FI - Free Report) is scheduled to release its second-quarter 2024 results on Jul 24, before market open.

FI’s earnings surprise history has been decent. It has surpassed the Zacks Consensus Estimate in three of the trailing four quarters and met in one, the average surprise being 2.3%.

Fiserv, Inc. Price and EPS Surprise

 

Fiserv, Inc. Price and EPS Surprise

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

Q2 Expectations

The Zacks Consensus Estimate for the top line is pegged at $4.8 billion, implying 7.4% growth from the year-ago quarter’s actual. The rise is anticipated to have been due to an increase in revenues from Clover Capital, Rapid Deposit and its basic Clover SaaS plans.

Our estimate for Processing and Services revenues is pegged at $4.2 billion, suggesting a 6.6% increase from the year-ago quarter’s reported figure. We expect revenues from the Product segment to be $909.9 million, indicating 9.4% growth on a year-over-year basis.

We expect Merchant Acceptance and Financial Solutions revenues to increase 4.6% and 8.2% year over year to $2.2 billion and $2.6 million, respectively. The increases are likely to have been led by a solid micro-environment, coupled with the company’s ability to outperform by the addition of clients; retention and growth of existing clients; and providing more value-added solutions to those clients. The estimate for corporate and other revenues is pegged at $303.9 million, suggesting a 16% rise from that reported in the year-ago quarter.

The consensus estimate for EPS is pegged at $2.1, indicating a 15.5% year-over-year rise. Continued growth in revenues and operating margin expansion are anticipated to have driven EPS growth.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for FI 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 is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

FI currently has an Earnings ESP of -0.58% and a Zacks Rank of 4 (Sell).

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.

Booz Allen Hamilton (BAH - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter fiscal 2025 revenues is pegged at $2.9 billion, indicating year-over-year growth of 10.1%. For earnings, the consensus mark is pegged at $1.5 per share, implying a 3.4% rise from the year-ago quarter’s actual. The company beat the consensus estimate in the past three quarters and missed in one, with an average surprise of 12.5%.

BAH currently has an Earnings ESP of +1.95% and a Zacks Rank of 2. The company is scheduled to declare its first-quarter results on Jul 26.

Parsons (PSN - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2024 revenues is pegged at $1.5 billion, suggesting a 12.6% rise from the year-ago actual. For earnings, the consensus mark is pegged at 67 cents per share, suggesting a 6.4% rise from the year-ago quarter’s reported figure. The company beat the consensus estimate in the past four quarters, with an average surprise of 16.5%.

PSN currently has an Earnings ESP of +3.24% and a Zacks Rank of 2. The company is scheduled to declare its second-quarter results on Jul 31.

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


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