Summary
Fiserv Inc. (FISV) reported a solid first quarter for 2012, demonstrating continued growth in a challenging economic environment. Total revenue increased by 6% year-over-year to $1.108 billion, primarily driven by a 7% increase in the Payments segment and a 4% increase in the Financial segment. This revenue growth, coupled with effective cost management, led to a 9% increase in operating income to $241 million, with an improved operating margin of 21.8%. Diluted earnings per share from continuing operations rose significantly to $0.95, up from $0.77 in the prior year quarter. The company's recurring, fee-based revenue model continues to prove resilient, with essential services for clients contributing to stable performance. Despite some headwinds, such as increased expenses for new product development and support, Fiserv is making strategic investments in areas like digital payments and mobile banking. The company maintains a strong liquidity position, supported by operating cash flow and an undrawn revolving credit facility, and remains compliant with its debt covenants. Shareholder returns were also a focus, with substantial share repurchases during the quarter.
Financial Highlights
48 data points| Revenue | $1.10B |
| Cost of Revenue | $159.00M |
| Gross Profit | $938.00M |
| SG&A Expenses | $205.00M |
| Operating Expenses | $858.00M |
| Operating Income | $239.00M |
| Interest Expense | $43.00M |
| Net Income | $132.00M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.23 |
| Shares Outstanding (Basic) | 554.80M |
| Shares Outstanding (Diluted) | 562.00M |
Key Highlights
- 1Total revenue grew 6% to $1.108 billion for the three months ended March 31, 2012, compared to $1.048 billion in the prior year period.
- 2Operating income increased by 9% to $241 million, and operating margin improved to 21.8% from 21.1% year-over-year.
- 3Diluted earnings per share from continuing operations reached $0.95, a significant increase from $0.77 in Q1 2011.
- 4The Payments segment revenue grew 7%, while the Financial segment revenue grew 4%, both contributing to the overall top-line increase.
- 5The company repurchased $245 million of its common stock during the first quarter of 2012.
- 6Fiserv maintains strong compliance with its debt covenants and has a $1.0 billion revolving credit facility, with no borrowings outstanding as of March 31, 2012.
- 7Cash provided by operating activities was $236 million, a decrease of 17% compared to $283 million in the prior year, primarily due to working capital changes.