Fiserv's (FISV) Q4 Earnings & Revenues Surpass Estimates
Fiserv, Inc. FISV reported impressive fourth-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.57 beat the consensus mark by 1.3% and increased 21% year over year. Adjusted revenues of $4 billion missed the consensus estimate by a slight margin and increased 11% year over year.
Organic revenue growth was 11% in the reported quarter, led by 19% growth in the Acceptance segment, 4% growth in the Fintech segment and 8% growth in the Payments segment.
Shares of Fiserv have declined 6.7% over the past year compared with 21.2% loss of the industry it belongs to.
Other Quarterly Details
Processing and services revenues of $3.5 billion increased 12.5% year over year. Product revenues of $772 million were up 5% year over year.
Revenues at the Merchant Acceptance segment came in at $1.7 billion, up 18% year over year. There were no adjustments to these revenues in the reported as well as the year-ago quarter. Revenues at the Payments and Network segment increased 9% year over year to $1.5 billion. Adjusted revenues in the segment increased 8% year over year. Revenues at the Financial Technology segment increased 4% year over year to $771 million.
Adjusted operating income of $1.4 billion was up 11% from the year-ago quarter. Adjusted operating margin of 35.6% stayed flat year over year.
Balance Sheet and Cash Flow
Fiserv exited the quarter with cash and cash equivalents of $835 million compared with $933 million at the end of the prior quarter. Long-term debt was $20.7 billion compared with $20.5 billion at the end of the prior quarter.
The company generated $1.3 billion of net cash from operating activities and free cash flow was $997 million. Capital expenditures were $346 million. The company repurchased 9.9 million shares for $1 billion in the quarter.
Fiserv, Inc. Price, Consensus and EPS Surprise
Fiserv, Inc. price-consensus-eps-surprise-chart | Fiserv, Inc. Quote
2022 Guidance
Adjusted earnings per share are anticipated in the range of $6.4 to $6.55. The Zacks Consensus Estimate of $6.39 lies below the guidance. The company expects organic revenue growth of 7-9%.
Currently, Fiserv carries a Zacks Rank #3 (Hold).
Performance of Some Other Business Services Companies
Robert Half International RHI delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.
Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Automatic Data Processing ADP reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins ROL reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
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