Summary
Fiserv, Inc. (FISV) reported solid top-line growth in its Q3 2012 10-Q filing, with total revenue increasing by 5% year-over-year for both the quarter and the nine-month period. This growth was primarily driven by its Payments and Financial segments, reflecting strong performance in account processing, lending, and digital payment solutions. The company also demonstrated improved operating margins, particularly within its Financial segment, indicating effective cost management and operational efficiencies. Financially, Fiserv managed its debt effectively, issuing new senior notes and amending its credit facility. While operating cash flow saw a decrease compared to the prior year, largely due to a significant settlement of interest rate hedges and increased tax payments, the company maintained a strong liquidity position. Investors should note the continued investment in innovation and new product development, which is expected to drive future growth, though it also contributed to higher SG&A expenses. Overall, the report indicates a resilient business model with recurring revenue streams, successfully navigating a challenging economic environment. The company's strategic focus on client acquisition, deepening relationships, and operational effectiveness appears to be yielding positive results, with a clear emphasis on innovation to maintain its competitive edge.
Financial Highlights
50 data points| Revenue | $1.11B |
| Cost of Revenue | $150.00M |
| Gross Profit | $957.00M |
| SG&A Expenses | $206.00M |
| Operating Expenses | $842.00M |
| Operating Income | $265.00M |
| Interest Expense | $48.00M |
| Net Income | $139.00M |
| EPS (Basic) | $0.26 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 539.60M |
| Shares Outstanding (Diluted) | 546.40M |
Key Highlights
- 1Total revenue increased by 5% to $1.118 billion for the third quarter and by 5% to $3.326 billion for the first nine months of 2012, year-over-year.
- 2Operating income grew by 10% to $267 million for the third quarter and by 7% to $767 million for the first nine months of 2012.
- 3Operating margin improved by 100 basis points to 23.9% in Q3 2012 and by 60 basis points to 23.1% for the nine months ended September 30, 2012.
- 4In September 2012, Fiserv issued $700 million in 3.5% senior notes due in 2022 and entered into a $2.0 billion Amended and Restated Credit Agreement.
- 5Share-based compensation expense was $10 million for the third quarter and $35 million for the nine months ended September 30, 2012.
- 6Net income per share-diluted from continuing operations increased to $1.03 in Q3 2012 from $0.89 in Q3 2011.