2023-10-24 14:49:45 ET
Although inflation is affecting small businesses, they’re still seeing growth as consumers are still using them, said Fiserv ( NYSE: FI ) CEO Frank Bisignano.
“You see that in our revenue growth numbers,” he said.
Student loan payment resumption, Bisignano said in a CNBC interview on Tuesday, created a plateau last quarter on consumer spending charts.
This could be considered, on a year-over-year basis, as slowing, but the fourth quarter, with holiday season spending, will be “very telling” of how strong consumer spending data will be, he said.
Fiserv ( FI ) reported earnings on Tuesday, and they showed adjusted EPS of $1.96, excluding $0.40 from non-reoccurring items, and exceeding consensus estimates by 1%. Their adjusted revenue was reported to be $4.62B, also surpassing the consensus estimate by 0.53% and rising 8.2% year-over-year.
In addition, their fiscal year guidance was up from $7.40–$7.50 to $7.47–$7.52.
They have 1.4B accounts on file, 6M merchant locations worldwide, 12,000 transactions per second, and $1.71B in payments and networks, serving sectors such as banks, fintech, credit unions, small businesses, large financial institutions, large enterprises, and the public sector.
On Monday, the company announced a partnership with Melio, a B2B payments platform, to serve small businesses with their payment capabilities.
“Melio is about helping them manage their business better and helping banks partner with them better,” said Bisignano. “I think small businesses are feeling that they’re open for business, and consumers are using them.”
More on Fiserv:
- Fiserv: Q3 Results Are Bullish As Margins Expand And Clover Grows
- Fiserv: Growth Set To Accelerate
- Fiserv: Diverse Payment Offerings, With Strong Free Cash Flow
- Fiserv stock climbs after Q3 earnings beat, 2023 guidance raised
- Fiserv Non-GAAP EPS of $1.96 beats by $0.03, revenue of $4.87B beats by $270M
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Fiserv's high earning growth is due to consumers still spending, says CEO