The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Fiserv met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Margins increased across the board.
Fiserv reported revenue of $1.12 billion. The 16 analysts polled by S&P Capital IQ expected revenue of $1.11 billion on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $1.06 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 $1.27. The 19 earnings estimates compiled by S&P Capital IQ anticipated $1.27 per share. GAAP EPS of $1.01 for Q3 were 13% higher than the prior-year quarter's $0.89 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 42.4%, 180 basis points better than the prior-year quarter. Operating margin was 23.9%, 100 basis points better than the prior-year quarter. Net margin was 12.4%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.20 billion. On the bottom line, the average EPS estimate is $1.43.
Next year's average estimate for revenue is $4.50 billion. The average EPS estimate is $5.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 314 members out of 339 rating the stock outperform, and 25 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Fiserv a green thumbs-up, and eight 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 $78.63.
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