Fiserv Inc (FISV) Misses Q3 EPS by 4c, Miss on Revenues; FY17 EPS Mid-Point Guidance Below Consensus

Fiserv Inc (NASDAQ: FISV) reported Q3 EPS of $1.27, $0.04 worse than the analyst estimate of $1.31. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.45 billion.

Third Quarter 2017 Non-GAAP Results and Additional Information

• Adjusted revenue increased 2 percent to $1.34 billion in the third quarter and 3 percent to $3.98 billion in the first nine months of 2017 compared to the prior year periods.
• Internal revenue growth for the company was 2 percent in the third quarter, driven by 3 percent growth in the Payments segment. Financial segment internal revenue growth in the quarter was flat compared to the prior year period.
• Internal revenue growth for the company was 3 percent in the first nine months of 2017, with 4 percent growth in the Payments segment and 2 percent growth in the Financial segment.
• Adjusted earnings per share increased 11 percent to $1.27 in the third quarter and 13 percent to $3.71 in the first nine months of 2017 compared to the prior year periods.
• Adjusted operating margin decreased 20 basis points to 32.6 percent in the third quarter and increased 20 basis points to 32.4 percent in the first nine months of 2017 compared to the prior year periods.
• Free cash flow increased 10 percent to $819 million in the first nine months of 2017 compared to the prior year period. Cash distributions from StoneRiver of $44 million were not included in the company\'s free cash flow results for the first nine months of 2017.
• The company repurchased 2.4 million shares of common stock for $298 million in the third quarter and 8.3 million shares of common stock for $983 million in the first nine months of 2017. As of September 30, 2017, the company had 12.2 million remaining shares authorized for repurchase.
• The company completed three acquisitions during the quarter:
  • In July, the company acquired the assets of PCLender, LLC, a leader in next-generation internet-based mortgage software and mortgage lending technology solutions, to enhance the company\'s suite of mortgage origination services.
  • In August, the company acquired Dovetail Group Limited, a leading provider of bank payments and liquidity management solutions, to further enable the company to help financial institutions around the world transform their payments infrastructure.
  • In September, to expand its digital leadership, the company completed its acquisition of Monitise plc, a provider of digital solutions that enable innovative digital banking experiences for leading financial institutions worldwide.

GUIDANCE:

Fiserv Inc sees FY2017 EPS of $5.05-$5.12, versus the consensus of $5.10.

For earnings history and earnings-related data on Fiserv Inc (FISV) click here.

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