FISV - Fiserv raises lower end of guidance range; Q1 earnings beat on Merchant growth

2023-04-25 08:37:11 ET

Fiserv ( NASDAQ: FISV ) stock gained as much as 1.2% in Tuesday premarket trading after delivering first-quarter earnings and revenue above Street estimates, mostly driven by continued outperformance in the financial services technology company's Merchant business. That, in turn, spurred FISV to raise the lower end of its outlook for full-year profit and sales growth.

The company now expects 2023 adjusted EPS of $7.30-$7.40, vs. $7.33 average analyst estimate, compared with $7.25-$7.40 in the prior view.

Organic revenue growth for the full year is expected to be +8% to +9%, vs. the +6.9% consensus and +7% to +9% in the previous outlook.

"Our guidance for the year is tempered only by the potential for a weaker, second-half economy,” said Chairman, President and CEO Frank Bisignano.

Q1 adjusted EPS of $1.58 , exceeding Wall Street expectations of $1.56, fell from $1.91 in Q4 2022 and rose from $1.40 in the year-ago quarter. Adjusted revenue of $4.28B, surpassing the $4.17B consensus, slid from $4.63B in the prior quarter and climbed from $3.91B in Q1 of last year.

During the quarter, FISV turned in 13% organic revenue growth, led by 18% growth in the Merchant Acceptance segment, 3% growth in the Fintech segment and 13% growth in the Payments segment.

Adjusted operating income came in at $1.44B, down from $1.71B in Q4 2022 and up from $1.25B a year before. Adjusted operating margin stood at 33.6% vs. 39.2% in Q4 2022 and 32.0% in the year-earlier period.

Total expenses were $3.61B compared with $3.45B in the previous quarter and $3.29B a year ago.

The company repurchased 13.3M shares of common stock for $1.5B during Q1.

Earlier, Fiserv Non-GAAP EPS of $1.58 beats by $0.02, revenue of $4.28B beats by $110M.

More on Fiserv

• Fiserv: Deep Value Through Dominance In Payments
• Fiserv: Still Attractively Priced
• Fiserv launches 75M shares in share repurchase authorization

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