Fiserv Earnings Enjoy 24% Boost, Raises 2024 Outlook On Heels Of DoorDash Partnership

Fiserv, Inc FI reported fiscal third-quarter results, with revenue increasing by 7% year-over-year to $5.22 billion, beating the analyst consensus estimate of $4.91 billion. Adjusted revenue increased 7% year-over-year to $4.88 billion.

The financial technology and services provider’s adjusted EPS of $2.30 beat the analyst consensus estimate of $2.26.

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The adjusted EPS marked a 17% increase over last year’s period. The stock price slid after the print.

Organic revenue grew 15%, led by 24% growth in Merchant Solutions and 6% in Financial Solutions.

The adjusted operating margin increased by 170 bps Y/Y to 40.2%. Adjusted operating margin increased 290 basis points Y/Y to 37.7% in the Merchant Solutions segment and by 40 bps Y/Y to 47.4% in the Financial Solutions segment.

“We are pleased with our third quarter performance, which showcases strength across both our Merchant and Financial Solutions segments and several significant new wins,” Chair and CEO Frank Bisignano said.

FY24 Outlook: Fiserv raised organic revenue growth outlook to 16%-17% (prior 15%-17%) and raised adjusted EPS outlook to $8.73-$8.80 (prior $8.65 – $8.80), representing growth of 16%-17% Y/Y versus the $8.75 consensus.

Fiserv announced a partnership with DoorDash Inc DASH to integrate financial services into the online delivery platform.

Through this partnership, DoorDash is leveraging Fiserv’s expertise in merchant acquiring, account processing, and card issuing to streamline financial services for Dashers. Starion Bank, a long-standing Fiserv client, will act as the Sponsor Bank for the Crimson accounts.

Fiserv stock gained 80% in the last 12 months.

Price Action: FI stock is down 0.85% at $195.50 premarket at the last check on Tuesday.

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