The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Fiserv missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share grew significantly.
Gross margins increased, operating margins contracted, net margins expanded.
Fiserv recorded revenue of $1.16 billion. The 15 analysts polled by S&P Capital IQ predicted a top line of $1.18 billion on the same basis. GAAP reported sales were 0.4% lower than the prior-year quarter's $1.16 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 $1.39. The 20 earnings estimates compiled by S&P Capital IQ averaged $1.39 per share. GAAP EPS of $1.32 for Q4 were 32% higher than the prior-year quarter's $1.00 per share. (The prior-year quarter included -$0.07 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.2%, 30 basis points better than the prior-year quarter. Operating margin was 25.0%, 20 basis points worse than the prior-year quarter. Net margin was 15.5%, 320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $1.35.
Next year's average estimate for revenue is $4.81 billion. The average EPS estimate is $5.96.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 314 members out of 342 rating the stock outperform, and 28 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 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 $81.39.
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