We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fiserv (FI) Q2 Earnings Surpass Estimates, Revenues Miss
Read MoreHide Full Article
Fiserv, Inc. (FI - Free Report) has reported mixed second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the mark.
FI’s adjusted earnings per share (excluding 60 cents from non-recurring items) of $2.1 outpaced the consensus mark by 1.9% and increased 17.7% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by a slight margin but rose on a year-over-year basis.
The FI stock has gained 21.2% over the past year, outperforming the 11% rally of the industry it belongs to.
Processing and services’ revenues of $4.1 billion increased 5.5% year over year and missed our estimate of $4.2 billion. Revenues in the Product segment were $967 million, up 16.2% from the year-ago quarter and outpacing our estimate of $911.7 million.
Revenues from Merchant Acceptance were $2.4 billion, increasing 9.2% year over year and meeting our estimate. The Financial Solutions segment reported revenues of $2.4 billion, a 6% increase from the year-ago figure and meeting our estimate.
The adjusted operating margin for the Merchant acceptance segment was 36.6%, up 290 basis points (bps) on a year-over-year basis. The adjusted operating margin for the Financial Solutions segment was 45.9%, flat with the year-ago quarter.
Balance Sheet & Cash Flow
Fiserv exited the second quarter of 2024 with cash and cash equivalents of $1.2 billion, flat with the preceding quarter. The long-term debt was $24.4 billion compared with $23.8 billion in the first quarter of 2024. FI generated $958 million in net cash from operating activities, whereas its free cash flow was $1 billion. Capital expenditure was $420 million. The company repurchased 10 million shares for $1.5 billion in the quarter.
2024 Guidance
For 2024, the company has raised the guidance for adjusted earnings per share to $8.65-$8.80 compared with the $8.60-$8.75 stated previously. The mid-point ($8.73) of the revised guidance is higher than the Zacks Consensus Estimate for earnings of $8.69 per share. Fiserv raised its year-over-year earnings per share growth guidance to 15-17% from the 14-16% mentioned previously. FI expects organic revenues to rise 15-17% year over year.
IQV’s adjusted earnings (excluding 67 cents from non-recurring items) were $2.6 per share, outpacing the Zacks Consensus Estimate by 2.3% and increasing 2.4% on a year-over-year basis. Total revenues of $3.8 billion surpassed the consensus estimate marginally and rose 2.3% from the year-ago quarter.
Omnicom Group Inc. (OMC - Free Report) reported impressive second-quarter 2024 results.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and gained 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% on a year-over-year basis.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Fiserv (FI) Q2 Earnings Surpass Estimates, Revenues Miss
Fiserv, Inc. (FI - Free Report) has reported mixed second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the mark.
FI’s adjusted earnings per share (excluding 60 cents from non-recurring items) of $2.1 outpaced the consensus mark by 1.9% and increased 17.7% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by a slight margin but rose on a year-over-year basis.
The FI stock has gained 21.2% over the past year, outperforming the 11% rally of the industry it belongs to.
Fiserv, Inc. Price and EPS Surprise
Fiserv, Inc. price-eps-surprise | Fiserv, Inc. Quote
Other Quarterly Details
Processing and services’ revenues of $4.1 billion increased 5.5% year over year and missed our estimate of $4.2 billion. Revenues in the Product segment were $967 million, up 16.2% from the year-ago quarter and outpacing our estimate of $911.7 million.
Revenues from Merchant Acceptance were $2.4 billion, increasing 9.2% year over year and meeting our estimate. The Financial Solutions segment reported revenues of $2.4 billion, a 6% increase from the year-ago figure and meeting our estimate.
The adjusted operating margin for the Merchant acceptance segment was 36.6%, up 290 basis points (bps) on a year-over-year basis. The adjusted operating margin for the Financial Solutions segment was 45.9%, flat with the year-ago quarter.
Balance Sheet & Cash Flow
Fiserv exited the second quarter of 2024 with cash and cash equivalents of $1.2 billion, flat with the preceding quarter. The long-term debt was $24.4 billion compared with $23.8 billion in the first quarter of 2024. FI generated $958 million in net cash from operating activities, whereas its free cash flow was $1 billion. Capital expenditure was $420 million. The company repurchased 10 million shares for $1.5 billion in the quarter.
2024 Guidance
For 2024, the company has raised the guidance for adjusted earnings per share to $8.65-$8.80 compared with the $8.60-$8.75 stated previously. The mid-point ($8.73) of the revised guidance is higher than the Zacks Consensus Estimate for earnings of $8.69 per share. Fiserv raised its year-over-year earnings per share growth guidance to 15-17% from the 14-16% mentioned previously. FI expects organic revenues to rise 15-17% year over year.
Fiserv currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
IQVIA Holdings Analytics Inc. (IQV - Free Report) reported impressive second-quarter 2024 results.
IQV’s adjusted earnings (excluding 67 cents from non-recurring items) were $2.6 per share, outpacing the Zacks Consensus Estimate by 2.3% and increasing 2.4% on a year-over-year basis. Total revenues of $3.8 billion surpassed the consensus estimate marginally and rose 2.3% from the year-ago quarter.
Omnicom Group Inc. (OMC - Free Report) reported impressive second-quarter 2024 results.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and gained 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% on a year-over-year basis.