Summary
Fiserv, Inc. (FISV) reported solid revenue growth for the six months ended June 30, 2018, with total revenue increasing by 3% to $2.86 billion. This growth was primarily driven by a 7% increase in the Payments segment, bolstered by card services and biller solutions, and supported by contributions from recent acquisitions. The Financial segment experienced a revenue decline, mainly due to prior divestitures, though account processing businesses showed some growth. Despite revenue growth, operating income for the quarter ended June 30, 2018, saw a slight decrease of 4%, impacted by higher selling, general, and administrative expenses and a loss on the sale of businesses. However, for the six-month period, operating income surged by 31% to $966 million, largely due to a significant gain on the sale of a 55% interest in its Lending Solutions business. Diluted earnings per share for the six months increased substantially to $1.61 from $1.08 in the prior year, benefiting from this divestiture gain. The company also adopted new accounting standards, including ASC 606 for revenue recognition, which impacted prior period comparability but did not materially affect cash flows. Fiserv's balance sheet remains robust with significant goodwill and intangible assets, and the company continues to manage its debt effectively.
Financial Highlights
47 data points| Revenue | $1.42B |
| Cost of Revenue | $179.00M |
| Gross Profit | $1.24B |
| SG&A Expenses | $320.00M |
| Operating Expenses | $1.06B |
| Operating Income | $358.00M |
| Interest Expense | $45.00M |
| Net Income | $251.00M |
| EPS (Basic) | $0.61 |
| EPS (Diluted) | $0.60 |
| Shares Outstanding (Basic) | 408.40M |
| Shares Outstanding (Diluted) | 416.40M |
Key Highlights
- 1Total revenue for the first six months of 2018 increased by 3% to $2.86 billion, driven by a 7% growth in the Payments segment.
- 2Operating income for the six months ended June 30, 2018, saw a significant increase of 31% to $966 million, largely due to a $229 million gain from the sale of a 55% interest in its Lending Solutions business.
- 3Diluted earnings per share (EPS) for the six months ended June 30, 2018, rose to $1.61 from $1.08 in the prior year, benefiting from the gain on the Lending Solutions divestiture.
- 4The company adopted ASC 606 for revenue recognition effective January 1, 2018, using a modified retrospective approach, which impacted reported revenues and expenses for comparability but did not materially affect operating cash flows.
- 5Selling, general, and administrative expenses increased as a percentage of revenue in both the second quarter (to 22.5% from 19.9%) and the first six months (to 21.9% from 19.9%), partly due to acquisition-related costs.
- 6The company maintained strong liquidity, with $348 million in cash and cash equivalents and $1.0 billion in available borrowings under its revolving credit facility as of June 30, 2018.
- 7Fiserv sold a 55% interest in its Lending Solutions business for $419 million in gross proceeds in March 2018, retaining a 45% ownership interest in the resulting joint ventures.