Please ensure Javascript is enabled for purposes of website accessibility

Fiserv Names Its Next CEO, Sees Q1 Earnings Jump

By Dave Kovaleski – May 8, 2020 at 2:33PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Jeffery Yabuki will be replaced by Frank Bisignano.

On Thursday, Fiserv (FISV -0.62%) delivered first-quarter results that showed gains in revenue and earnings, and announced the name of its next CEO.

The payment provider, which acquired competitor First Data last July, saw revenue jump 151% year over year to $3.77 billion in the first quarter. About $1.4 billion of that came from First Data.

Net income increased by 74% to $392 million as earnings per share climbed 2% to $0.57. But adjusted to evaluate Fiserv's operating performance on a combined basis with First Data, net income was up 16% to $684 million year-over-year and EPS was up 16% to $0.99. 

A man in a suit on a track handing a baton marked "succession" to another man in a suit.

Image source: Getty Images

Due to the uncertainty caused by the COVID-19 pandemic, Fiserv withdrew its 2020 guidance, which had called for revenue growth of 6% to 8% for the year and EPS growth of 23% to 27%.

"Although the economic uncertainty clouds the predictability of our near-term financial results, we have seen improving performance over the last several weeks. We remain confident in the strength and resilience of our business model and will provide further updates on our financial outlook throughout the year," Chairman and CEO Jeffery Yabuki said.

The company also announced that Yabuki will be stepping down as CEO on July 1, to be replaced by Frank Bisignano, formerly the chairman and CEO of First Data. Since the acquisition, he has been serving as Fiserv's president and chief operating officer.

Yasuki led the company for 15 years. He will remain on as executive chairman for the rest of 2020 to smooth the transition.

"With the successful integration of First Data well under way, this is the right time for Frank to lead the next phase of the company's evolution," said Yabuki. 

Fiserv's stock was down about 3% in mid-afternoon trading on Friday and is down more than 9% year to date.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Fiserv, Inc. Stock Quote
Fiserv, Inc.
FISV
$97.95 (-0.62%) $0.61

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.