Fiserv thrives in Q3
Fiserv Inc., a provider of financial services technology solutions, has reported financial results for the third quarter of 2017 as follows:
- Q3 GAAP revenue increased 1 percent year over year to $1.4 billion, with 3 percent growth in the payments segment and 1 percent decline in the financial segment.
- For the first nine months of 2017, GAAP revenue increased 3 percent year over year to $4.18 billion, with 4 percent growth in payments and 2 percent growth in financial. Growth included the effects of acquisitions and the divestiture in May of the company's Australian item processing business.
- GAAP earnings per share were $1.08 in the Q3 and $3.23 in the first nine months of 2017, year over year increases of 13 percent and 2 percent, respectively.
- GAAP operating margin was 26.5 percent in both Q3 and first nine months of 2017, decreasing 30 basis points and increasing 20 basis points, respectively, compared with prior year periods.
"Fiserv continued to execute well, delivering double-digit adjusted earnings per share growth despite pressure from lower periodic revenue in the quarter," Fiserv President and CEO Jeffery Yabuki said in a press release. "Sales were solid in the quarter, providing momentum for a strong close to the year."
- In July, the company acquired the assets of PCLender LLC, a provider of internet-based mortgage software and mortgage lending technology solutions.
- In August, the company acquired Dovetail Group Ltd., a provider of bank payments and liquidity management solutions.
- In September, the company completed its acquisition of Monitise PLC, a provider of digital solutions for financial institutions worldwide.
For the full year, Fiserv expects internal revenue growth of 4 percent and adjusted earnings per share of $5.05–$5.12, which represents growth of 14–16 percent over adjusted earnings per share of $4.43 in 2016.
The company expects to achieve its full-year revenue projections, with strong Q4 growth leading to an acceleration of internal revenue growth in 2018, Yabuki said.