Fintech Firm Fiserv's Q2 Earnings: Revenue Surge Beats Expectations, Hikes Annual Outlook

Fiserv, Inc FI reported fiscal second-quarter results, with revenue increasing by 7% year-over-year to $5.11 billion, beating the analyst consensus estimate of $4.82 billion. Adjusted revenue increased 7% year-over-year to $4.79 billion. 

Adjusted EPS of $2.13 beat the analyst consensus estimate of $2.10. 

Also Read: Fiserv Welcomes Former JP Morgan Executive Takis Georgakopoulos As Senior Advisor: Details

The adjusted EPS marked an 18% increase over $1.81 from last year’s period. The stock price gained after the print.

Organic revenue grew 18%, led by 28% growth in Merchant Solutions and 8% in Financial Solutions.

The adjusted operating margin increased by 160 bps Y/Y to 38.4%. Adjusted operating margin increased 290 basis points Y/Y to 36.6% in the Merchant Solutions segment and was flat at 45.9% in the Financial Solutions segment.

Chair and CEO Frank Bisignano said, “Fiserv’s integrated solutions, deep client relationships, and strategic positioning continue to drive our industry leadership.”

FY24 Outlook: Fiserv reiterated organic revenue growth of 15%-17% and raised adjusted EPS outlook to $8.65 – $8.80 (prior $8.60 – $8.75), representing growth of 15%-17% Y/Y versus the $8.71 consensus.

Fiserv stock gained over 21% in the last 12 months.

Fiserv Stock Prediction For 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Fiserv, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Fiserv, the 200-day moving average sits at $141.57, according to Benzinga Pro, which is below the current price of $160.72. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Price Action: FI shares were up 2.34% at $160.90 at the last check on Wednesday.

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