Puestos
6Fiserv reported Q4 EPS of $2.51, $0.02 more than the analyst estimate of $2.49.
Revenue for the quarter amounted to $5.25B, compared to the average estimate of $4.96B.
Forecast
Fiserv expects EPS of $10.10-$10.30 for the fiscal year 2025. Analysts had expected an average of $10.21.
💼 Performance Overview:
Fiserv reported 7% YoY growth in revenue, reaching $5.25B, with organic revenue growth at 13%. This was fueled by strong performance in Merchant Solutions (+23%) and Financial Solutions (+4%). The company also achieved a 240 bps expansion in operating margin, reflecting improved efficiency and strategic initiatives.
📊 Key Financial Metrics (YoY Growth):
▫️ Revenue: $5.25B vs. $4.92B (+7%)
▫️ Net Income: $938M vs. $870M (+8%)
▫️ Adj. EPS: $2.51 vs. $2.19 (+15%)
▫️ GAAP EPS: $1.64 vs. $1.45 (+13%)
▫️ Operating Margin: 31.8% vs. 29.4% (+240 bps)
▫️ Adj. Operating Margin: 42.9% vs. 41.1% (+180 bps)
📍 Segment Breakdown:
▫️ Merchant Solutions: $2.50B (+11% YoY), organic growth of 23%
▫️ Financial Solutions: $2.40B (+3% YoY), organic growth of 4%
💰 Balance Sheet Highlights:
▫️ Total Assets: $77.18B vs. $90.89B
▫️ Cash & Equivalents: $2.99B vs. $2.96B
▫️ Total Debt: $24.84B vs. $23.12B
▫️ Free Cash Flow: $5.23B (+30% YoY)
📈 Future Outlook:
▫️ 2025 Organic Revenue Growth: 10%-12%
▫️ 2025 Adj. EPS Guidance: $10.10-$10.30 (+15%-17%)
▫️ Strategic Priorities: Continued expansion in Merchant Solutions, investment in digital banking technology, and leveraging Clover POS for SMB growth.
🔎 Key Takeaway: Strong momentum in Merchant Solutions, operational efficiency gains, and robust free cash flow support Fiserv’s positive 2025 outlook.
Servus together,
today from the section perfect for long-term investment.
Fiserv
After I already told you a bit about McDonalds last time, let's stay in the USA right away.
Fisverv offers financial services and now has over 13,000 customers, which consist of businesses and financial institutions.
For businesses, Fiserv offer highly customizable yet secure software, creating digital accounting for their customers (pretty boring as far as it goes). Their products (software) range from processing classic card payments to mobile banking systems. This also includes risk/failure verification systems and fraud management systems. This means that the small retailer or large enterprise can outsource all processes/operations related to financial transactions to Fiserv. For banks and co, more complex issues such as deposits, lending, etc. are taken care of.
The company itself is actually rather boring, but this is not a disadvantage for long-term investments. However, the growth in sales is remarkable. If the revenue was $5,823 million in 2018, it grew to $14,852 million in 2020. That represents revenue growth of over 150%.
At the same time, the KUV of the last 12 months was 4.64.
By consistently acquiring other companies (over 130 in the last 30 years) and constantly adding new partnerships (the latest San Francisco Community Banks 12/23/21), the company will continue to grow and show very solid numbers.
Conclusion.
A rather boring company that is showing bombastic growth and should definitely do well in the coming years. Especially with regard to pushing omnichannel, FISERV offers the optimal solutions for their customers.
Since this is not investment advice DYOR.
If I were looking for a new stock for my long-term portfolio, Fiserv would certainly be on the shortlist.
New LAnGeTiNvEsTiOn :) Let's see, I'm going to start scaling in slowly.
Old Hare on Tour🚀?
Fiserv is a 37-year-old payment specialist, which specializes in the development & implementation of IT solutions for the finance and insurance industry. Currently, the share price is trending 9% below the all-time high - strike😜?
Business areas 📊
🧍🏼♂️Händlerakzeptanz - Issuing point-of-sale (POS) hardware systems to companies
🤑 Payments & Network - offering protection against fraud and processing of digital payments for banks and financial institutions Services
👷🏽 Offer of financial technologies - innovative software solutions for administrative tasks that can be used by banks ( Also, banks can build their online banking with it)
Nice 2 Know 🧠
🏋🏽♀️ Year-on-year sales increased by 17% in the 2nd quarter
🎯 In the area of merchant acceptance, sales of the 2nd quarter increased by 36% year-on-year
🥊 Global merchant volume increased by 35%
🚀 Payments processed within Clover POS systems whitened to 96% growth ( Clover= cloud-based enterprise payment platform)
☁️ Deal with Deutsche Bank, which expands the Clover platform to a market of 800,000 merchants
💰Expected earnings growth stands at 25%
🏦 According to estimates, Fiserv's profit is expected to increase by 17% in the coming year ( Paypal by 24%)
Defensive structure🛡
🚦 Fiserv does not lend money & is thus less sensitive to interest rates
In addition, the company was able to show a price increase of about 125% within the last 5 years, which is even higher than the S&P 500 ( 102%) within this period👀.
What is your opinion on Fiserv's numbers & do you think they will look the same in the near future🏆?
Is the stock already in your portfolio or still on your watchlist🧐?
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Source: The Motley Fool, finanzen.net,
investing.com , Marketscreener
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