Fiserv,
Inc. (NYSE: FI), a provider of payments and financial services technology
solutions, announced its financial results for the first quarter of 2024 on
Tuesday. The company reported a 7% increase in GAAP revenue and a 20% growth in
organic revenue compared to the same period last year.
Fiserv Reports Strong
First Quarter 2024 Results
According
to the report, total revenues reached $4.88 billion, compared to $4.56 billion
in the same period last year. As a result, operating income rose to $1.18
billion, and net income was $752 million, compared to $576 million in Q1 2023.
Adjusted net income was $1.12 billion, up from $996 million in the previous
period.
The company
remains focused on its “virtuous cycle of investment, revenue growth,
operating leverage, capital return and re-investment for further growth,”
according to Frank Bisignano, the CEO of Fiserv.
GAAP
earnings per share (EPS) rose by 39% to $1.24 in the first quarter of 2024,
while adjusted EPS grew by 19% to $1.88. Fiserv’s GAAP operating margin
improved to 24.2% from 20.5% in the previous year’s quarter.
$FI – Fiserv, Inc. 2024 Q1 – Results – Earnings Call Presentation. https://t.co/pwCXkRuTKe #finance #stocks #stockmarket
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Segment Performance and
Cash Flow
The
Merchant Solutions segment saw a significant increase in GAAP operating margin,
reaching 34.1% compared to 29.7% in Q1 2023, and the Financial Solutions
segment’s margin also improved to 44.1% from 42.4%.
The
company’s Merchant Solutions segment experienced a 13% growth in GAAP revenue,
while the Financial Solutions segment saw a 3% increase. Adjusted revenue grew
by 7% overall, with organic revenue growth reaching 36% in Merchant Solutions and 5% in Financial Solutions.
Net cash
provided by operating activities amounted to $831 million in Q1 2024, a
decrease from $1.13 billion in the prior year period. Free cash flow declined to $454 million from $861 million in Q1 2023.
Outlook and Strategic
Initiatives
Fiserv
affirmed its 2024 organic revenue growth outlook of 15% to 17% and raised its
adjusted EPS outlook to $8.60-$8.75, representing a growth of 14% to 16%.
“Current
model, along with our strong first quarter results, led us to raise our 2024
adjusted earnings per share outlook for the full year,” added Bisignano.
During the
first quarter, Fiserv repurchased 10.2 million shares of common stock for $1.5
billion and completed a public offering of $2.0 billion in senior notes.
A month ago, Fiserv and Amadeus IT Group entered a competition to purchase Shift4 Payments, a payment processor valued at nearly $7 billion. Reuters reported that both companies are gearing up to submit their final offers for the acquisition in the coming weeks. Concurrently, Fiserv has collaborated with NCR Atleos Corporation to allow consumers to pay for utilities, phone, cable, and other bills in cash through thousands of ATMs situated in US retailers, grocery stores, convenience stores, and pharmacies.
This article was written by Damian Chmiel at www.financemagnates.com.
