What's Next: Fiserv's Earnings Preview

Fiserv FI is set to give its latest quarterly earnings report on Tuesday, 2024-10-22. Here's what investors need to know before the announcement.

Analysts estimate that Fiserv will report an earnings per share (EPS) of $2.26.

The announcement from Fiserv is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

Last quarter the company beat EPS by $0.03, which was followed by a 3.2% drop in the share price the next day.

Here's a look at Fiserv's past performance and the resulting price change:

Stock Performance

Shares of Fiserv were trading at $197.29 as of October 18. Over the last 52-week period, shares are up 70.58%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Fiserv

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Fiserv.

The consensus rating for Fiserv is Outperform, based on 20 analyst ratings. With an average one-year price target of $194.55, there's a potential 1.39% downside.

Understanding Analyst Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of PayPal Holdings, Fidelity National Info and Block, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• PayPal Holdings is maintaining an Outperform status according to analysts, with an average 1-year price target of $81.04, indicating a potential 58.92% downside.
• For Fidelity National Info, analysts project an Outperform trajectory, with an average 1-year price target of $88.31, indicating a potential 55.24% downside.
• Analysts currently favor an Outperform trajectory for Block, with an average 1-year price target of $85.64, suggesting a potential 56.59% downside.

Insights: Peer Analysis

Within the peer analysis summary, vital metrics for PayPal Holdings, Fidelity National Info and Block are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Fiserv ranks: - Top for Revenue Growth. - Bottom for Gross Profit. - Bottom for Return on Equity.

Get to Know Fiserv Better

Fiserv is a leading provider of core processing and complementary services, such as electronic funds transfer, payment processing, and loan processing, for us banks and credit unions, with a focus on small and midsize banks. Through the merger with First Data in 2019, Fiserv also provides payment processing services for merchants. About 10% of the company's revenue is generated internationally.

Financial Insights: Fiserv

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Fiserv's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 7.38%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 17.51%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Fiserv's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.14%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Fiserv's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.96%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.91.

To track all earnings releases for Fiserv visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.