Summary
Fiserv Inc. reported solid performance for the second quarter and first six months of 2010, demonstrating resilience in a challenging economic environment. Total revenue saw a modest increase of 2% year-over-year for the quarter and was flat for the year-to-date, driven primarily by growth in its Payments segment's processing and services revenue. The company also achieved improved operating income and margins, with an operating income increase of 7% for both the quarter and the six-month period. Diluted earnings per share from continuing operations also showed significant growth, up 15% for the quarter and 16% year-to-date, indicating effective cost management and operational efficiencies. Financially, Fiserv maintained a strong liquidity position with $338 million in cash and cash equivalents and generated robust operating cash flow of $431 million in the first six months of 2010. The company continued to focus on debt reduction, having repaid approximately $200 million of long-term debt in the first half of the year. While the company faces potential headwinds from new financial regulations like the Dodd-Frank Act, its recurring revenue model and focus on essential services position it well for continued stability and growth.
Financial Highlights
48 data points| Revenue | $1.02B |
| Cost of Revenue | $129.00M |
| Gross Profit | $893.00M |
| SG&A Expenses | $185.00M |
| Operating Expenses | $771.00M |
| Operating Income | $251.00M |
| Net Income | $127.00M |
| EPS (Basic) | $0.21 |
| EPS (Diluted) | $0.21 |
| Shares Outstanding (Basic) | 605.60M |
| Shares Outstanding (Diluted) | 610.40M |
Key Highlights
- 1Total revenue increased 2% to $1.022 billion for the three months ended June 30, 2010, and remained flat at $2.030 billion for the six months ended June 30, 2010.
- 2Operating income grew 7% to $251 million for the quarter and 7% to $489 million for the six-month period, indicating strong operational performance.
- 3Diluted earnings per share from continuing operations rose to $0.85 for the quarter (up from $0.74 in Q2 2009) and $1.65 for the six-month period (up from $1.42 in H1 2009).
- 4The Payments segment continues to be a growth driver, with revenue up 3% for the quarter driven by electronic payments and banking services.
- 5Net cash provided by operating activities from continuing operations increased by 9% to $431 million for the first six months of 2010.
- 6The company reduced its long-term debt by approximately $200 million during the first six months of 2010.
- 7Interest expense decreased by 16% in the quarter and 17% year-to-date due to lower borrowings and the impact of interest rate hedges.