The 10-second takeaway
For the quarter ended June 30 (Q2), Fiserv met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped.
Gross margins grew, operating margins dropped, net margins shrank.
Fiserv tallied revenue of $1.20 billion. The 12 analysts polled by S&P Capital IQ foresaw revenue of $1.19 billion on the same basis. GAAP reported sales were 8.9% higher than the prior-year quarter's $1.10 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.50. The 19 earnings estimates compiled by S&P Capital IQ predicted $1.44 per share. Non-GAAP EPS of $1.50 for Q2 were 17% higher than the prior-year quarter's $1.28 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $1.12 for Q2 were 4.3% lower than the prior-year quarter's $1.17 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.2%, 90 basis points better than the prior-year quarter. Operating margin was 22.8%, 70 basis points worse than the prior-year quarter. Net margin was 12.6%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.22 billion. On the bottom line, the average EPS estimate is $1.51.
Next year's average estimate for revenue is $4.81 billion. The average EPS estimate is $5.93.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 314 members out of 343 rating the stock outperform, and 29 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 give Fiserv a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fiserv is hold, with an average price target of $89.21.
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