FISV - Fiserv tightens 2022 earnings guidance after Q3 top-line beat

Fiserv ( NASDAQ: FISV ) stock slid 5.5% in Monday premarket trading even after the payments and financial services technology company narrowed its full-year guidance for organic revenue and adjusted EPS growth following mixed Q3 results .

Nevertheless, “we are pleased with our third quarter performance with organic revenue growth at the high-end of the full year outlook, and notable strength in the payments segment of our portfolio,” said Frank Bisignano, Fiserv's CEO, chairman and president.

The company is expecting 2022 organic revenue growth to be 11% vs. the prior view of 9%-11%. Adjusted EPS is expected to be $6.48-6.55 this year, compared with $6.45-6.55 in the previous guidance and the consensus of $6.48.

Q3 adjusted EPS of $1.63 fell short of the average analyst estimate of $1.69 but increased from $1.47 a year ago.

Revenue of $4.52B, though, exceeded the consensus of $4.31B and rose from $4.16B in the year-ago quarter.

It posted 11% organic revenue growth in Q3, led by 14% growth in the Acceptance segment, 1% growth in the Fintech segment and 11% growth in the Payments segment.

Adjusted operating income was $1.51B, up from $1.36B a year earlier. Adjusted operating margin of 35.2% vs. 34.2% in Q3 2021.

Expenses totaled $3.66B compared with $3.53B in Q3 of last year.

Free cash flow decreased to $2.11B from $2.29B a year before.

Earlier, Fiserv Non-GAAP EPS of $1.63 misses by $0.06, revenue of $4.52B beats by $210M, raises FY earnings guidance .

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