Fiserv Stock Falls On Tightening FY21 Internal Revenue Growth, Adjusted EPS Outlook

Fiserv Inc FISV reported third-quarter FY21 GAAP revenue growth of 10% year-on-year to $4.16 billion and adjusted revenue growth of 10% to $3.96 billion, versus the consensus of $3.96 billion.
Internal revenue growth (organic, constant currency) was 10%, led by 18% growth in the Acceptance segment, 4% growth in the Fintech segment, and 6% growth in the Payments segment.
Margin: The adjusted operating margin expanded 130 bps to 34.2%.
The adjusted EPS was $1.47 beat the consensus of $1.45.
Net cash provided by operating activities was $2.69 billion in the first nine months of 2021. Fiserv generated a free cash flow of $2.29 billion. It held $942 million in cash and equivalents.
"We posted another strong quarter of double-digit adjusted revenue and adjusted EPS growth as we continue to invest in organic and inorganic growth and demonstrate unmatched execution," CEO Frank Bisignano said.
Outlook: Fiserv sees FY21 internal revenue growth of 11% (prior view 10% - 12%) and adjusted EPS of $5.55 - $5.60 (prior outlook $5.50 - $5.60) versus consensus of $5.57.
Price Action: FISV shares traded lower by 9.72% at $99.16 on the last check Wednesday.