Earnings Review and Free Research Report: Fiserv’s Adjusted EPS Grew 10%; Re-affirmed Guidance for 2017

Research Desk Line-up: Priceline Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Fiserv, Inc. (NASDAQ: FISV), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FISV, following the Company's release of its second quarter fiscal 2017 results on August 01, 2017. The financial services technology Company's revenue grew 2% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Business Services industry. Pro-TD has currently selected The Priceline Group Inc. (NASDAQ: PCLN) for due-diligence and potential coverage as the Company reported on August 08, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Priceline when we publish it.

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Earnings Reviewed

For the three months ended June 30, 2017, GAAP revenue for Fiserv increased 2% to $1.39 billion, clocking 2% growth in both the Payments and Financial segments. GAAP revenue in the reported quarter reflects the divestiture of the Company's Australian item processing business which closed in May 2017. Fiserv's adjusted revenue increased 2% to $1.32 billion in Q2 2017. The Company's revenue numbers fell short of analysts' estimates of $1.42 billion.

Fiserv's GAAP operating margin was 26.8% in Q2 2017 and 26.5% in H1 2017, increasing 20 basis points and 50 basis points, respectively, compared to the prior year's periods. The Company's adjusted operating margin increased 10 basis points to 32.0% in the reported quarter and expanded 40 basis points to 32.3% in the first six months of 2017.

For Q2 2017, Fiserv's GAAP earnings totaled $221 million, or $1.02 per diluted share, compared to earnings of $212 million, or $0.94 per diluted share, in Q2 2016. The Company's adjusted earnings per share increased 10% in the reported quarter to $1.19, but came in below Wall Street's expectations of $1.23 per share.

Fiserv's GAAP earnings per share dropped 3% to $2.15 on a y-o-y basis in H1 2017. GAAP earnings per share included net investment gains of $0.08 per share and $0.39 per share in H1 2017 and H1 2016, respectively, driven by the disposition of a business and a business interest at StoneRiver Group, L.P., a joint venture in which the Company owns a 49% interest. Fiserv's adjusted earnings per share rose 14% to $2.43 in H1 2017.

Segment Results

During Q2 2017, Fiserv's Payments and Industry Products segment adjusted revenues totaled $716 million compared to $693 million in Q2 2016. The Company's Financial Institution Services adjusted revenues grew to $623 million from $613 million in the year ago comparable quarter.

Cash Matters

Fiserv's net cash provided by operating activities was $691 million in H1 2017 compared with $687 million in the prior year's corresponding period. Net cash provided by operating activities included cash distributions from StoneRiver of $31 million and $140 million in H1 2017 and H1 2016, respectively.

The Company's free cash flow surged 26% to $555 million in H1 2017 compared to the prior year's same period. A cash distribution from StoneRiver of $31 million related to the sale of a business has been excluded from the Company's free cash flow results for the reported period.

Fiserv repurchased 2.5 million shares of its common stock for $295 million in Q2 2017 and 5.9 million shares of its common stock for $684 million in H1 2017. As of June 30, 2017, the Company had 14.6 million remaining shares authorized for repurchase.

In June 2017, Fiserv made a recommended cash offer to acquire Monitise PLC for approximately £70 million ($89 million). The transaction is subject to certain conditions including Monitise's shareholder's approval.

Outlook for 2017

Fiserv continues to expect 2017 internal revenue growth in a range of 4% to 5% and adjusted earnings per share in a range of $5.03 to $5.17, which represents growth of 14% to 17 % over earnings of $4.43 per share in 2016.

Stock Performance

On Tuesday, August 15, 2017, the stock closed the trading session at $124.70, marginally rising 0.52% from its previous closing price of $124.05. A total volume of 557.11 thousand shares have exchanged hands. Fiserv's stock price rallied 4.13% in the last three months, 13.22% in the past six months, and 21.10% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 17.33%. The stock is trading at a PE ratio of 30.51. At Tuesday's closing price, the stock's net capitalization stands at $26.17 billion.

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