Fiserv, Inc.
CEO : Mr. Frank J. Bisignano
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 8.8% YoY | 116.1% | 142.3% | 2023-02-07 |
Frank Bisignano says,
Expected Impact on Fiserv Stock
- Fiserv had a strong ending to 2022 with better-than-expected growth against a challenging backdrop, leading to a positive momentum going into 2023.
- Organic revenue growth for the year was 11%, and adjusted EPS was $6.49, up 16%.
- In 2023, Fiserv expects organic revenue growth of 7% to 9%, adjusted operating margin expansion above 125 basis points, and adjusted earnings per share of $7.25 to $7.40, assuming a mild recession in the US.
- Fiserv recorded strong performance across all operating segments, led by merchant acceptance, with organic revenue growth of 16% and 17% in the quarter and year, respectively.
- Fiserv advanced its core banking cloud roadmap for new and existing clients with the acquisition and integration of Finxact and completed the three major credit issuer implementations and followed them up with two major new wins in the fourth quarter.
Bob Hau says,
Positive Q4 and Full Year Results
- Total company organic revenue growth was 12% in Q4 and 11% for the full year, led by Merchant Acceptance segment growth of 17% for the full year.
- Adjusted operating income grew 20% to $1.7 billion in Q4, resulting in an adjusted operating margin of 39.2%, a sequential improvement of 400 basis points.
- Adjusted earnings per share increased 22% to $1.91 in Q4 and 16% to $6.49 for the full year.
Strong Segment Performance
- Merchant Acceptance segment revenue outlook of $10 billion by 2025 is on track, with 16% organic revenue growth in Q4 and 17% for the full year.
- Clover active merchant count grew 9% in 2022, with Clover revenue up 23% in Q4 and 25% for the full year.
- Payments and Network segment organic revenue grew 10% in Q4 and 9% for the full year, driven by growth in North American credit active accounts on file and the California Middle-class Tax refund program.
- Financial Technology segment posted 8% organic revenue growth in Q4 and 5% for the full year, with 14 core wins in the quarter and a backlog of implementations for 2023.
Measured Outlook for 2023
- Expect organic revenue growth of 7% to 9%, in line with medium-term guidance, with adjusted operating margin expansion of at least 125 basis points.
- Adjusted earnings per share of $7.25 to $7.40, representing 12% to 14% growth over 2022 and the 38th consecutive year of double-digit adjusted EPS growth.
- Estimate approximately $3.8 billion of free cash flow for 2023.
Capital Allocation Strategy
- Continued focus on a strong balance sheet, share repurchases, and complementary and innovative acquisitions.
- Repurchased $2.5 billion of shares over the last 24 months and expect to repurchase remaining authorized shares in 2023.
Continued Investment in Growth Opportunities
- Investing in growth platforms and redirecting free cash flow guidance toward dollars to align more directly with business operations.
- Retaining focus on long-term free cash flow as a driver of long-term value for shareholders.
Q & A sessions,
Back to Business Initiatives
- Provided back to business grants to 13 veteran and military spouse business owners through partnerships in Atlanta
- Launched back to business in New Jersey, committing $1 million to small local minority-owned businesses
- Awarded 241 back to business grants in total for the year
Environmental Sustainability
- GHG emissions results for 2021 improved from the prior year
- Received LEED Gold status for 1 Broadway space and awaiting LEED Platinum status for new technology innovation center in Berkeley Heights
- Pursuing LEED Gold for offices in Milwaukee and Dublin, Ireland
Company Performance
- Delivered beyond expectations in the past year
- Reached $10 billion revenue goal
- 11% organic revenue growth in 2022
- Adjusted operating margin expanded 120 basis points to 35.1%
- Adjusted EPS was $6.49, up 16%
- Expecting organic revenue growth of 7% to 9% in 2023
Merchant Acceptance
- Organic revenue growth of 16% and 17% in the quarter and year, respectively
- Clover and Carat operating systems driving segment growth
- Data-as-a-Service, Pay by Bank, disbursements and EBT online widening the value proposition to clients
- Expanded ISV and direct sales channels extending outreach to merchants
Payments and Network Revenue
- Organic revenue growth of 10% in the fourth quarter and 9% for the year
- Implemented three top 25 credit issuing customers and continued growth with existing customers
- Two major new credit wins in the fourth quarter with Target and Desjardins
No bad stock 