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Fiserv (FISV) Q2 Earnings & Revenues Beat Estimates, View Up

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Fiserv, Inc.FISV reported solid second-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of $1.37 beat the consensus mark by 6.2% and increased 47.3% year over year. Adjusted revenues of $3.86 billion beat the consensus estimate by 3.8% and increased year over year.

Internal revenue growth was 18% in the reported quarter, led by 41% growth in the Acceptance segment, 5% growth in the Fintech segment and 7% growth in the Payments segment.

Let’s check out the numbers in detail.

Revenues in Detail

Revenues at the Merchant Acceptance segment came in at $1.67 billion, up 36.2% year over year. Adjusted revenues of $1.67 billion grew 42.8% year over year.

Revenues at the Payments and Network segment increased 7.7% year over year to $1.42 billion. Adjusted revenues of $1.43 billion grew 7.4% year over year.

Revenues at the Financial Technology segment increased 5.6% year over year to $754 million.

Revenues at Total processing and services segment increased 16.3% year over year to $3.36 billion while product revenues grew 20% year over year to $690 million.

Operating Results

Adjusted operating income of $1.31 billion was up 41.2% from the year-ago quarter. Adjusted operating margin of 33.9% grew 510 basis points (bps) year over year.

Adjusted operating income at the Merchant Acceptance segment was $524 million, up more than 100% year over year. Adjusted operating margin grew to 31.4% from 19.1% in the year-ago quarter.

Adjusted operating loss at the Payments and Network segment was $124 million compared with a loss of $106 million in the year-ago quarter.

Operating income at the Financial Technology segment totaled $273 million, up 8.3% year over year. Operating margin of 36.2% improved 80 bps.

Fiserv, Inc. Price, Consensus and EPS Surprise

Fiserv, Inc. Price, Consensus and EPS Surprise
Fiserv, Inc. Price, Consensus and EPS Surprise

Fiserv, Inc. price-consensus-eps-surprise-chart | Fiserv, Inc. Quote

Balance Sheet and Cash Flow

Fiserv exited second-quarter 2021 with cash and cash equivalents of $841 million compared with $831 million at the end of the prior quarter. Long-term debt was $20.4 billion compared with $20.8 billion at the end of the prior quarter.

The company generated $1.06 million of net cash from operating activities in the reported quarter. Free cash flow was $897 million. Capital expenditures were $260 million.

The company repurchased 5 million shares for $588 million in the reported quarter.

2021 Guidance

Fiserv has raised the lower end of its outlook for 2021. The company now expects internal revenue growth of 10% to 12% compared with the prior guidance of 9% to 12%.

Adjusted earnings per share are now anticipated in the range of $5.50 to $5.60 compared with the prior guidance of $5.35 and $5.50. The Zacks Consensus Estimate of $5.44 lies below the updated guidance.

Currently, Fiserv carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Equifax’s EFX second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.

Robert Half’s RHI second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.

ManpowerGroup’s MAN second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100%. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.


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