Summary
Fiserv Inc. reported steady financial performance for the six months ended June 30, 2017, with total revenue increasing by 3% to $2.78 billion compared to the same period in 2016. This growth was primarily driven by the Processing and services segment, which saw a 4% increase in revenue. Operating income also grew by 5% to $737 million, demonstrating improved profitability. The company successfully managed its expenses, with total expenses increasing by 3% but decreasing as a percentage of revenue, partially benefiting from a gain on the sale of its Australian item processing business. The company's balance sheet shows total assets of $9.68 billion and total liabilities of $7.29 billion as of June 30, 2017. Fiserv maintained a strong liquidity position, with $299 million in cash and cash equivalents and $1.2 billion available under its revolving credit facility. The company continued its strategy of disciplined capital allocation, repurchasing approximately $684 million of its common stock during the period, while also actively managing its debt. Overall, the results indicate a company with consistent revenue growth, controlled expenses, and a sound financial structure.
Financial Highlights
47 data points| Revenue | $1.39B |
| Cost of Revenue | $175.00M |
| Gross Profit | $1.21B |
| SG&A Expenses | $276.00M |
| Operating Expenses | $1.01B |
| Operating Income | $372.00M |
| Interest Expense | $44.00M |
| Net Income | $221.00M |
| EPS (Basic) | $0.52 |
| EPS (Diluted) | $0.51 |
| Shares Outstanding (Basic) | 423.60M |
| Shares Outstanding (Diluted) | 432.50M |
Key Highlights
- 1Total revenue for the six months ended June 30, 2017, increased by 3% year-over-year to $2.78 billion, driven by growth in the Processing and services segment.
- 2Operating income for the six-month period rose by 5% to $737 million, indicating improved operational efficiency.
- 3Net income for the six months ended June 30, 2017, was $468 million, a decrease of 7% from $501 million in the prior year, impacted by a significant gain on investment in unconsolidated affiliate in the prior year.
- 4Diluted earnings per share for the six months ended June 30, 2017, were $2.15, a slight decrease from $2.21 in the prior year.
- 5The company maintained a strong liquidity position with $299 million in cash and cash equivalents and a $1.2 billion revolving credit facility available.
- 6Fiserv actively repurchased $684 million of its common stock in the first six months of 2017 as part of its capital allocation strategy.
- 7The company completed the acquisition of Online Banking Solutions, Inc. for $78 million and made an offer to acquire Monitise plc, demonstrating continued pursuit of strategic growth opportunities.