A Glimpse of Fiserv's Earnings Potential

Fiserv FI is gearing up to announce its quarterly earnings on Tuesday, 2024-10-22. Here's a quick overview of what investors should know before the release.

Analysts are estimating 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.

Earnings Track Record

The company's EPS beat by $0.03 in the last quarter, leading to a 3.2% drop in the share price on the following day.

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

Tracking Fiserv's 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.

Analysts' Perspectives on Fiserv

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Fiserv.

With 20 analyst ratings, Fiserv has a consensus rating of Outperform. The average one-year price target is $194.55, indicating a potential 1.39% downside.

Peer Ratings Comparison

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

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

Snapshot: Peer Analysis

The peer analysis summary outlines pivotal metrics for PayPal Holdings, Fidelity National Info and Block, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Fiserv ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. Fiserv's return on equity is below average compared to its peers.

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.

Fiserv: Financial Performance Dissected

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Fiserv displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 7.38%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Fiserv's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 17.51% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.14%, the company may need to address challenges in generating satisfactory returns for shareholders.

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.