Fiserv Analysts Increase Their Forecasts After Upbeat Earnings

Fiserv, Inc FI reported better-than-expected fourth-quarter financial results on Tuesday.

Fiserv reported fourth-quarter results, with revenue increasing by 6% Y/Y to $4.92 billion, beating the consensus of $4.69 billion. Adjusted revenue increased 6% Y/Y to $4.64 billion, according to data from Benzinga Pro.

Adjusted EPS of $2.19 beat the consensus of $2.15. This is a 15% increase over $1.91 from the same period last year. The adjusted operating margin increased by 150 bps Y/Y to 40.7%.

"Fiserv closed out 2023 with accelerated organic revenue growth of 12%, representing our third consecutive year of double-digit growth, as our momentum continued," said Frank Bisignano, Chairman, President and Chief Executive Officer of Fiserv. "We are proud to have delivered on our commitments, with results that exceeded expectations across key measures of our financial performance – organic revenue growth, adjusted earnings per share, adjusted operating margin and free cash flow."

Fiserv now expects FY24 organic revenue growth of 15%-17% and adjusted EPS of $8.55-$8.70, representing growth of 14%-16% Y/Y versus the $8.61 consensus.

Fiserv shares rose 1.4% to trade at $143.06 on Wednesday.

These analysts made changes to their price targets on Fiserv after the company reported quarterly results.

• Stephens & Co. raised the price target on Fiserv from $140 to $150. Stephens & Co. analyst Charles Nabhan maintained an Equal-Weight rating.
• RBC Capital raised the price target on Fiserv from $144 to $158. RBC Capital analyst Daniel Perlin maintained an Outperform rating.

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