The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Fiserv beat expectations on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins dropped, and net margins expanded.
Fiserv chalked up revenue of $1.16 billion. The 15 analysts polled by S&P Capital IQ predicted a top line of $1.13 billion. Sales were 7.7% higher than the prior-year quarter's $1.08 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.27. The 19 earnings estimates compiled by S&P Capital IQ anticipated $1.27 per share on the same basis. GAAP EPS of $1.00 for Q4 were 28% higher than the prior-year quarter's $0.78 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 42.9%, 20 basis points worse than the prior-year quarter. Operating margin was 24.2%, 60 basis points worse than the prior-year quarter. Net margin was 12.3%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $4.53 billion.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 333 members out of 356 rating the stock outperform, and 24 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Fiserv a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fiserv is outperform, with an average price target of $68.56.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Fiserv. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.