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Fiserv Extends Ties with Carleton

Zacks Equity Research

Recently announced, Fiserv, Inc. (FISV) extended its ties with Carleton, Inc. The company decided to ameliorate its Common Origination Platform with Carleton’s SmartCales financial tool.

The SmartCales financial software is a lending calculation software which would allow mortgage, business and consumer lenders at every hierarchy to make calculations easily from anywhere to better cater to their customers’ risk management solutions. The calculation files shall be integrated pervasively with the Common Origination Platform and shall be consistently maintained and deployed by Carleton throughout the U.S.

Previously, the SmartCalcs software had been used only in the Automotive Loan Origination System. This extension made with Carleton shall enhance the Common Origination Platform of Fiserv leading to value maximization for its customers. Furthermore, the bond with Carleton since 2007, shall also strengthen immensely for the company through this venture.

Fiserv announced the financial results for its final quarter of 2011 on February 2, 2012. The company posted an astounding performance in its Financial and Institution Services segment with revenues rising almost 7% to $540 million in the quarter. Elevated high-margin sales and improved cost efficiencies also allowed the segment to report a rise in operating margin to 33% from 31.8% in the previous year period.

The company currently projects adjusted revenues to grow 4% - 6% in 2012. Even though major growth drivers are expected to act from mid-2012, the current advances made by Fiserv puts it in quite a favorable position to battle ongoing headwinds.

Developments, especially on the positive side, are not singularly peculiar to Fiserv. Not long ago, Heartland Payment Systems (HPY) announced that its Mobuyle mobile acceptance solution shall now be integrated with Apple, Inc. (AAPL) products, namely its iOS mobile phones. Other ominous competitors prevalent in the industry are Equifax Inc. (EFX) and Fidelity National Information Services, Inc. (FIS).

At present we have a Neutral recommendation on Fiserv. The stock currently carries a Zacks #2 Rank, which translates into a short-term rating of Buy.

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