What happened
Fiserv (FI -2.02%) shareholders outperformed a rising market last month. Shares rose 12% in February compared to a 2.6% gain in the S&P 500, according to data provided by S&P Global Market Intelligence.
The rally put the fintech company into modestly positive territory for 2021, but shares are still trailing the market's 20% surge in the past full year.
Image source: Getty Images.
So what
Investors were happy with Fiserv's latest operating results, which were released on Feb. 9. That announcement showed that revenue fell slightly in the fiscal fourth quarter but grew substantially over the wider year. "Fiserv delivered terrific financial and operation results despite the unprecedented market conditions," CEO Frank Bisignano said in a press release. Management was especially pleased with the company's rising profitability and expanding cash flow trends.
Now what
Fiserv is predicting another year of strong results ahead. 2021 should bring sales growth of between 8% and 12% as adjusted operating margins rise by at least 2 full percentage points. If the fintech specialist can meet these goals, then earnings will surge this year and shareholders will have a good shot at outperforming the broader market.
