Summary
Fiserv, Inc. reported modest revenue growth of 1% for the third quarter of 2017 and 3% for the first nine months, reaching $1.4 billion and $4.18 billion, respectively. Net income for the quarter was $232 million, or $1.08 per diluted share, compared to $214 million, or $0.96 per diluted share, in the prior year. For the nine-month period, net income was $700 million, or $3.23 per diluted share, a slight decrease from $715 million, or $3.18 per diluted share, in the same period of 2016. The company completed four strategic acquisitions totaling $383 million in the first nine months of 2017, integrating them into its Payments and Financial Institution Services segments to expand its digital and payment solutions offerings. Operating expenses increased slightly, in line with revenue growth, but operating margins showed mixed performance between segments. The Payments segment saw improved operating margins, driven by scalable revenue growth and operating leverage, while the Financial segment experienced some pressure due to reduced contract termination fees and software license revenue. The company maintained strong operating cash flow of $1.02 billion for the nine-month period, though this was a slight decrease from the prior year, primarily due to lower dividends from an unconsolidated affiliate. Fiserv continues to prioritize strategic initiatives including portfolio management, client relationship enhancement, operational efficiency, and innovation, while managing its debt and share repurchase programs.
Financial Highlights
47 data points| Revenue | $1.40B |
| Cost of Revenue | $174.00M |
| Gross Profit | $1.23B |
| SG&A Expenses | $284.00M |
| Operating Expenses | $1.03B |
| Operating Income | $370.00M |
| Interest Expense | $45.00M |
| Net Income | $232.00M |
| EPS (Basic) | $0.55 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 420.20M |
| Shares Outstanding (Diluted) | 429.10M |
Key Highlights
- 1Total revenue for the third quarter of 2017 increased by 1% to $1.4 billion, and by 3% to $4.18 billion for the nine-month period, primarily driven by growth in the Payments segment.
- 2Diluted earnings per share (EPS) increased to $1.08 in Q3 2017 from $0.96 in Q3 2016, and grew to $3.23 for the nine-month period from $3.18 in the prior year.
- 3Fiserv completed four acquisitions in the first nine months of 2017 for a total of $383 million, enhancing its digital banking and payment capabilities.
- 4Operating income for the nine-month period increased by 3% to $1.107 billion, with the Payments segment showing a 7% increase in operating income.
- 5Net cash provided by operating activities remained strong at $1.015 billion for the nine-month period, although it was a slight decrease of 3% year-over-year.
- 6The company's long-term debt increased to $5.111 billion at September 30, 2017, from $4.562 billion at December 31, 2016, partly due to funding acquisitions.
- 7Share repurchase activity continued, with approximately 2.4 million shares repurchased during the third quarter of 2017.