The 10-second takeaway
For the quarter ended March 31 (Q1), Fiserv met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins dropped, and net margins grew.
Fiserv reported revenue of $1.11 billion. The 15 analysts polled by S&P Capital IQ hoped for a top line of $1.10 billion on the same basis. GAAP reported sales were 5.7% higher than the prior-year quarter's $1.05 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 $1.20. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.15 per share. GAAP EPS of $0.94 for Q1 were 24% higher than the prior-year quarter's $0.76 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.3%, 20 basis points worse than the prior-year quarter. Operating margin was 21.8%, 100 basis points worse than the prior-year quarter. Net margin was 11.9%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $1.26.
Next year's average estimate for revenue is $4.54 billion. The average EPS estimate is $5.10.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 316 members rating the stock outperform and 23 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 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 outperform, with an average price target of $70.29.
Is Fiserv playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
- Add Fiserv to My Watchlist.
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. 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.