Fiserv’s CEO Meeting Takeaways
Deutsche Bank analysts provided their views on Fiserv, Inc. (NASDAQ:FISV) following their one-on-one meeting with the company’s Chairman, President and CEO Frank Bisignano to discuss the economic landscape and the company’s solid fundamentals.
To this point, the CEO sees consumer spending remaining stable or “hanging in there”, but would not be surprised to see a weakening environment take hold in the near future. However, he seems confident that the company will weather any economic storm well and still be able to solidly grow EPS even if the economy falters.
Indeed, given the company’s mix of business (arguably approximately 85% recurring revenue) and strong foundation, Frank believes the model could potentially hold up better than previous downturns. The analysts maintained their buy rating on the company’s shares following the meeting.
| Symbol | Price | %chg |
|---|---|---|
| DCII.JK | 40000 | 0 |
| TCS.NS | 4553.75 | 0 |
| TCS.BO | 4551.85 | 0 |
| 018260.KS | 150700 | 0 |
Fiserv Shares Surge 8% Following Q4 Results
Fiserv Inc (NASDAQ:FISV) shares gained more than 8% yesterday after the company reported its Q4 results, with EPS of $1.91, in-line with expectations, and revenue of $4.36 billion, slightly better than the consensus estimate of $4.35 billion.
The company provided its fiscal 2023 outlook, expecting EPS to be in the range of $7.25-$7.40, compared to the consensus estimate of $7.28.
According to the analysts at Deutsche Bank, much of the credit for the robust quarter, past 18-month results and solid 2023 guidance needs to be given to CEO Frank Bisignano for changing the organic revenue growth of the company to sustainable higher levels.
Given solid continued execution and the expectation for a 38th consecutive year of double-digit EPS growth, the analysts believe the company is deserving of the premium it trades at vs peers. Based on the updated outlook, the analysts raised their 2023/2024 EPS by $0.16/$0.24 to $7.29/$8.10 and introduced a 2025 EPS of $8.99.
Fiserv Shares Up 4% on Q2 Beat & Raise
Fiserv, Inc. (NASDAQ:FISV) shares rose more than 4% on Tuesday following the company’s reported Q2 results, with EPS of $1.56 coming in line with the Street estimate and revenue of $4.25 billion beating the Street estimate of $4.07 billion.
The results were driven by outperformance in Merchant Acceptance, where the Clover and Carat platforms continue to drive growth. However, inflation and continued investments across the business resulted in adjusted operating margins coming in below expectations and the company lowered its expectations for 2022 margin expansion.
However, despite mounting macro concerns, the company raised its 2022 revenue growth guidance to approximately 9-11% organic (vs. 7-9% prior) and EPS growth to approximately 16-17% (vs. 15-17% prior) with the low end of guidance assuming a macro slowdown in H2/22. The company expects 2022 EPS to be in the range of $6.45-$6.55, compared to the Street estimate of $6.47.
