Summary
Fiserv Inc.'s (FISV) third-quarter 2015 report shows steady revenue growth driven primarily by its Payments and Financial segments. Total revenue increased by 4% year-over-year for both the quarter and the nine-month period, reaching $1.31 billion and $3.89 billion respectively. This growth was fueled by increased processing and services revenue, reflecting new client acquisitions and higher transaction volumes. Despite a slight decrease in product revenue, the company demonstrated improved operating income and margins, signaling effective cost management and operational efficiencies. Notably, the company successfully refinanced a significant portion of its debt, issuing new senior notes and redeeming older, higher-interest debt, although this resulted in an $85 million pre-tax loss on early debt extinguishment. Financially, Fiserv maintained a strong operational cash flow of $955 million for the first nine months of 2015, though this was a slight decrease from the prior year, impacted by lower dividends from an unconsolidated affiliate. The company also continued its share repurchase program, demonstrating a commitment to returning value to shareholders. While facing ongoing industry trends such as financial institution consolidation and evolving digital channels, Fiserv's diversified client base and focus on recurring revenue streams position it for continued stability.
Financial Highlights
46 data points| Revenue | $1.31B |
| Cost of Revenue | $172.00M |
| Gross Profit | $1.14B |
| SG&A Expenses | $258.00M |
| Operating Expenses | $971.00M |
| Operating Income | $342.00M |
| Interest Expense | $41.00M |
| Net Income | $218.00M |
| EPS (Basic) | $0.47 |
| EPS (Diluted) | $0.46 |
| Shares Outstanding (Basic) | 465.80M |
| Shares Outstanding (Diluted) | 474.00M |
Key Highlights
- 1Total revenue grew by 4% to $1.31 billion in Q3 2015 and by 4% to $3.89 billion for the first nine months of 2015, driven by strong performance in the Payments and Financial segments.
- 2Operating income increased by 9% in Q3 2015 to $342 million and by 10% for the first nine months to $982 million, demonstrating improved profitability and operational efficiencies.
- 3The company successfully completed a debt refinancing in May 2015, issuing $1.75 billion in senior notes and redeeming $1.1 billion of existing debt, though this resulted in an $85 million pre-tax loss on early debt extinguishment.
- 4Operating cash flow remained robust at $955 million for the first nine months of 2015, a slight decrease of 1% from the prior year, primarily impacted by lower dividend income from an unconsolidated affiliate.
- 5Selling, general, and administrative expenses as a percentage of revenue remained stable for the nine-month period (19.5% vs 19.4%), indicating effective cost control.
- 6Fiserv continued its share repurchase program, buying back 5.97 million shares in Q3 2015 under a publicly announced plan.
- 7Despite a decrease in income from investment in unconsolidated affiliate, net income for the first nine months of 2015 was $523 million, albeit lower than $573 million in the prior year.