Fiserv (FI) to Report Q3 Earnings: What's in the Offing?
Fiserv, Inc. FI is scheduled to release its third-quarter 2023 results on Oct 24, before market open.
FI’s earnings surprise history has not been impressive. It has surpassed the Zacks Consensus Estimate in one of the four trailing quarters, missing on one instance and matching the mark on two occasions. The average surprise is negative 0.71%.
Q3 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $4.59 billion, up 7.4% from the year-ago actual figure. This growth can be attributed to the expected strong performance in Merchant Acceptance as well as the favorable performance of the Payments and Network segment.
Fiserv, Inc. Price and EPS Surprise
Fiserv, Inc. price-eps-surprise | Fiserv, Inc. Quote
The consensus estimate for earnings per share is pegged at $1.94, up 19% year over year. Strong segmental performance is likely to be the driving force of such earning growth.
Segmental Expectations
Our estimate for Processing and Services revenues for third-quarter 2023 is pegged at $3.91 billion, indicating 6.3% growth from the year-ago reported figure. Our estimate for Product revenues for the quarter is pegged at $901.6 million, indicating 7.3% growth from the year-ago reported figure.
Further, we are expecting Merchant Acceptance and Financial Technology revenues to grow 7.4% and 3% year over year, respectively. The GAAP revenue estimates of Payment and Network, and Corporate and Other revenues are pegged at $1.73 billion and $282.1 million, indicating year-over-year growth of 6.7% and 9.8%, respectively.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for FI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
FI has an Earnings ESP of -0.03% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.
Verisk AnalyticsVRSK: The company’s revenues are expected to decline 11.2% from the year-ago figure while the bottom line is expected to match the prior-year figure. VRSK has beaten the Zacks Consensus Estimate in three of the previous four quarters and matched on one instance, with an average surprise of 9.9%. The company has an Earnings ESP of +10.66% and a Zacks Rank of 3. VRSK is expected to release its third-quarter earnings on Nov 1.
S&P GlobalSPGI: The company’s revenues are expected to increase 5.7% from the year-ago figure and the bottom line is expected to indicate 4.1% growth from the prior-year figure. SPGI has beaten the Zacks Consensus Estimate in three of the previous four quarters and matched on one instance, with an average surprise of 3.9%. The company has an Earnings ESP of +0.15% and a Zacks Rank of 3. SPGI is expected to release its third-quarter earnings on Nov 2.
Trane Technologies TT: The company’s revenues and bottom line are expected to indicate growth of 9.3% and 17.2%, respectively, from the year-ago figure. TThas beaten the Zacks Consensus Estimate in all previous four quarters, with an average surprise of 7.3%. The company has an Earnings ESP of +0.89% and a Zacks Rank of 3. TT is expected to release its third-quarter earnings on Nov 1.
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Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
Fiserv, Inc. (FI) : Free Stock Analysis Report
Trane Technologies plc (TT) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
