Valero Deploys Fiserv


Fiserv, Inc. (FISV) recently announced that its CorPoint Deposit Manager, cash management solution platform has been selected by Valero Retail Holdings, Inc. for its retail outlets in North America. An armored-carrier agnostic remote cash capture solution and smart-safe hardware devices are to be installed at these stores by Valero as per this contract.

Through this application, Fiserv will provide an inexpensive user-friendly solution which would give Valero’s central office access to real-time information on gas and various merchandise sales and inventory information at its retail outlets. This would not only eliminate communication gaps between Valero’s head-office and its retail stores but the advanced system shall also be installed in the most risk-free and simple manner at the units.

Fiserv reported financial results for its first quarter of 2012 on May 1, 2012. Record first quarter sales came in at around $1 billion, surging 5.3% annually, driven by improved yields across segments pervasively. A marginal yearly rise in operating margin was also observed to reach 28.7% in the first quarter of 2012.

The company looks to be in good shape to combat market fluctuations and certain perennial downsides with its strong outlook for 2012. Along with a margin hike, Fiserv expects adjusted revenue to grow at a rate of 4% - 6% for the full year.

On the other hand, on March 28, 2012, Envestnet Inc. (ENV) announced that its integrated wealth management solution has been selected by Spire Investment Partners, LLC. to better cater to its customer needs. Also, on April 17, 2012 CITGO Petroleum Corporation extended its debit and credit card processing services contract with Heartland Payment Systems (SPY) for three consecutive years. So, it is imperative that Fiserv, instead of being too complacent about its current state of affairs, strives towards continuing the saga of contract wins in order to retain its formidable position in the industry.

The company currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. We also maintain a long-term ‘Neutral’ recommendation on the stock.

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