Fiserv (FI 43.97%) stock is getting crushed in Wednesday's trading following a very disappointing quarterly report. The fintech company's share price has fallen 43.8% in the daily session as of 2:45 p.m. ET.
Fiserv reported its third-quarter results before the market opened this morning, and underperformance in the period shocked the market. In addition to showing weak Q3 numbers, the company lowered its full-year targets and announced some shakeups for its leadership team and board of directors.
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Fiserv stock tanks on weak Q3 results
For the third quarter, Fiserv posted non-GAAP (adjusted) earnings per share of $2.04 on sales of $4.92 billion. The results came in far below the average targets from Wall Street analysts, which had called for adjusted earnings per share of $2.65 and revenue of $5.35 billion. Revenue in the period increased just 0.8% year over year, and the company's adjusted operating income fell 7% to $1.8 billion.
NYSE: FI
Key Data Points
What's next for Fiserv?
Following its disappointing Q3 performance, Fiserv lowered its forecasts for the full-year period. The company now expects annual organic revenue growth to be between 3.5% and 4% and adjusted earnings per share to be between $8.50 and $8.60. Previously, management had guided for organic sales growth of roughly 10% and adjusted earnings per share of between $10.15 and $10.30.
So while the company's midpoint earnings target previously called for annual earnings growth of approximately 16%, shareholders are now looking at a small year-over-year decline for profits. Following the weak results, Fiserv plans to make some significant strategic shifts -- but uncertainty on that front also isn't sitting well with investors.
