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Is a Beat in the Cards for Fiserv (FISV) in Q4 Earnings?
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Fiserv, Inc. is expected to report fourth-quarter 2018 results on Feb 7.
Over the past year, shares of Fiserv have gained 29.3%, outperforming the 15.4% rise of the industry it belongs to and 2.4% gain of the Zacks S&P 500 composite.
Let's check out how things are shaping up for the announcement.
Top Line Expectations
The Zacks Consensus Estimate for fourth-quarter 2018 revenues stands at $1.55 billion, indicating year-over-year growth of 2.2%. The top line is expected to be driven by strength in card, biller and bank solutions businesses. In third-quarter 2018, revenues of $1.41 billion came ahead of the year-ago figure by $12 million. Internal revenue growth was 5%.
Segment wise, the consensus estimate for Payments and Industry Products revenues is pegged at $931 million, indicating year-over-year growth of 7.6%. The segment should benefit from solid performance of card services and biller businesses’ and increased adoption and growing transaction volumes. Growth across debit and total P2P transactions and rise in Mobiliti ASP subscribers are the other positives. In third-quarter 2018, segment revenues of $844 million improved 6% year over year.
The consensus mark for Financial Institution Services revenues is pegged at $635 million, indicating year-over-year decline of 4.9%. Divestiture of 55% interest of the company's Lending Solutions business (the "Lending Transaction") is expected to weigh on the segment. In third-quarter 2018, segment revenues of $574 million decreased 7.3% year over year.
The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at 84 cents, indicating year-over-year decline of 18.3%. The bottom line is likely to benefit from operating leverage, tax rate reductions and capital deployment.
In third-quarter 2018, adjusted earnings per share of 75 cents increased 22.9% year over year.
Our Model Suggests a Beat
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided, especially if they have a negative Earnings ESP. 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 +0.03% and a Zacks Rank #3, a combination that increases the odds of an earnings beat.
Here are a few stocks from the broader Zacks Business Services sector that investors may also consider as our model shows that these have the right combination of elements to beat on fourth-quarter 2018 earnings:
Spotify Technology (SPOT - Free Report) has an Earnings ESP of +75.00% and a Zacks Rank #3. The company is scheduled to release results on Feb 6.
IQVIA Holdings (IQV - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. The company is slated to report results on Feb 14.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Is a Beat in the Cards for Fiserv (FISV) in Q4 Earnings?
Fiserv, Inc. is expected to report fourth-quarter 2018 results on Feb 7.
Over the past year, shares of Fiserv have gained 29.3%, outperforming the 15.4% rise of the industry it belongs to and 2.4% gain of the Zacks S&P 500 composite.
Let's check out how things are shaping up for the announcement.
Top Line Expectations
The Zacks Consensus Estimate for fourth-quarter 2018 revenues stands at $1.55 billion, indicating year-over-year growth of 2.2%. The top line is expected to be driven by strength in card, biller and bank solutions businesses. In third-quarter 2018, revenues of $1.41 billion came ahead of the year-ago figure by $12 million. Internal revenue growth was 5%.
Segment wise, the consensus estimate for Payments and Industry Products revenues is pegged at $931 million, indicating year-over-year growth of 7.6%. The segment should benefit from solid performance of card services and biller businesses’ and increased adoption and growing transaction volumes. Growth across debit and total P2P transactions and rise in Mobiliti ASP subscribers are the other positives. In third-quarter 2018, segment revenues of $844 million improved 6% year over year.
The consensus mark for Financial Institution Services revenues is pegged at $635 million, indicating year-over-year decline of 4.9%. Divestiture of 55% interest of the company's Lending Solutions business (the "Lending Transaction") is expected to weigh on the segment. In third-quarter 2018, segment revenues of $574 million decreased 7.3% year over year.
Fiserv, Inc. Revenue (TTM)
Fiserv, Inc. Revenue (TTM) | Fiserv, Inc. Quote
Bottom Line Projections
The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at 84 cents, indicating year-over-year decline of 18.3%. The bottom line is likely to benefit from operating leverage, tax rate reductions and capital deployment.
In third-quarter 2018, adjusted earnings per share of 75 cents increased 22.9% year over year.
Our Model Suggests a Beat
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided, especially if they have a negative Earnings ESP. 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 +0.03% and a Zacks Rank #3, a combination that increases the odds of an earnings beat.
Fiserv, Inc. Price and EPS Surprise
Fiserv, Inc. Price and EPS Surprise | Fiserv, Inc. Quote
Other Stocks to Consider
Here are a few stocks from the broader Zacks Business Services sector that investors may also consider as our model shows that these have the right combination of elements to beat on fourth-quarter 2018 earnings:
First Data has an Earnings ESP of +3.17% and a Zacks Rank #2. The company is scheduled to release results on Feb 6. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spotify Technology (SPOT - Free Report) has an Earnings ESP of +75.00% and a Zacks Rank #3. The company is scheduled to release results on Feb 6.
IQVIA Holdings (IQV - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. The company is slated to report results on Feb 14.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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