Fiserv Inc (FI) Reports Strong Third Quarter 2023 Results
Fiserv Inc (NYSE:FI) reports an 8% GAAP revenue growth in Q3 2023 and year to date.
GAAP EPS increased by 108% in Q3 and 32% year to date.
Operating cash flow rose by 19% to $3.57 billion year to date.
Company raises 2023 organic revenue growth outlook to 11% and adjusted EPS outlook to $7.47 to $7.52.
On October 24, 2023, Fiserv Inc (NYSE:FI), a leading global provider of payments and financial services technology solutions, reported strong financial results for the third quarter of 2023. The company's GAAP revenue increased by 8% to $4.87 billion in Q3 2023 compared to the prior year period, with significant growth in the Acceptance, Fintech, and Payments segments.
Financial Highlights
Fiserv's GAAP earnings per share was $1.56 in Q3 and $3.54 in the first nine months of 2023, marking an increase of 108% and 32% respectively, compared to the prior year periods. The GAAP operating margin was 30.8% in Q3 and 25.2% in the first nine months of 2023, compared to 18.9% and 19.5% in the respective periods of 2022.
The company's operating cash flow increased by 19% to $3.57 billion in the first nine months of 2023 compared to $2.99 billion in the prior year period. Fiserv also reported a 29% increase in free cash flow to $2.72 billion year to date.
Company Performance and Future Outlook
Frank Bisignano, Chairman, President and Chief Executive Officer of Fiserv, commented on the company's performance,
Fiserv again delivered very strong financial results across the board, demonstrating our superior business model. We continued our leadership in payments through a broad portfolio of solutions, which is essential to the flow of commerce and money movement for our diverse client base around the world."
Given the strong performance in Q3, Fiserv has raised its full year 2023 outlook. The company now expects organic revenue growth of 11% and adjusted earnings per share growth of 15% to 16%, a range of $7.47 to $7.52 per share.
Key Financial Tables
Fiserv's financial tables reveal a strong financial position. The company repurchased 9.6 million shares of common stock for $1.2 billion in Q3 and 31.4 million shares of common stock for $3.7 billion in the first nine months of 2023. The company also completed a public offering of $2.0 billion of 5-year and 10-year senior notes with a weighted average coupon rate of 5.538%.
In conclusion, Fiserv Inc (NYSE:FI) has demonstrated a strong financial performance in Q3 2023, with significant growth in revenue, EPS, and cash flow. The company's positive outlook for 2023 indicates its confidence in maintaining this momentum.
This article first appeared on GuruFocus.
