Summary
Fiserv, Inc. (FISV) reported solid revenue growth in the second quarter and first half of 2012, driven by its Payments and Financial segments. Total revenue increased by 3% in Q2 and 4% year-to-date, reflecting the resilience of its recurring revenue model. Operating income also saw an increase, up 3% in Q2 and 6% year-to-date. The company's financial performance was supported by its strategic initiatives focused on delivering high-quality revenue growth and enhancing client relationships. The company's liquidity remains strong, with $302 million in cash and cash equivalents at the end of the period and access to a revolving credit facility. While operating cash flow saw a slight decrease year-over-year primarily due to working capital timing, the company continues to prioritize debt repayment, capital expenditures, and share repurchases. Fiserv is strategically investing in new products and services, such as its digital payment solutions, to drive future growth and maintain its competitive edge in the evolving financial services technology landscape.
Financial Highlights
50 data points| Revenue | $1.09B |
| Cost of Revenue | $155.00M |
| Gross Profit | $932.00M |
| SG&A Expenses | $204.00M |
| Operating Expenses | $830.00M |
| Operating Income | $257.00M |
| Interest Expense | $44.00M |
| Net Income | $161.00M |
| EPS (Basic) | $0.29 |
| EPS (Diluted) | $0.29 |
| Shares Outstanding (Basic) | 544.40M |
| Shares Outstanding (Diluted) | 551.20M |
Key Highlights
- 1Total revenue grew by 3% in Q2 2012 to $1.1 billion and by 4% in the first six months to $2.2 billion, demonstrating consistent top-line growth.
- 2Operating income increased by 3% in Q2 2012 to $259 million and by 6% in the first six months to $500 million, indicating improved profitability.
- 3The Payments segment showed robust revenue growth of 5% in Q2 and 6% year-to-date, driven by card services, digital channels, and acquired businesses.
- 4The Financial segment reported revenue growth of 1% in Q2 and 3% year-to-date, primarily from account processing and lending services.
- 5Net income per diluted share from continuing operations significantly increased to $1.18 in Q2 2012 (from $0.67 in Q2 2011) and to $2.13 in the first six months (from $1.45 in the first six months of 2011), excluding the impact of debt extinguishment charges in the prior year.
- 6The company maintained strong liquidity with $302 million in cash and cash equivalents and $1.0 billion revolving credit facility, despite a slight year-over-year decrease in operating cash flow.
- 7Fiserv continues to invest in product innovation and strategic acquisitions, such as CashEdge, to enhance its digital payments and mobile banking offerings.