Fiserv Continues to Recover from COVID-19 Shocks, Show Q3 Results
Brookfield-based financial services technology provider Fiserv Inc has reported its financial results for the third quarter and the first nine months of 2020, which saw a mixed performance across key metrics relative to the same periods over one year ago.
As the company continues recover from COVID-19 shocks in the second quarter, Fiserv reported adjusted earnings for the Q3 at $1.20 per share, up 19 percent from the same period a year earlier. Taking a YTD perspective, Fiserv posted $3.12 in the first nine months of 2020, up 11 percent over a yearly basis.
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Fiserv raised its full year 2020 outlook for adjusted earnings per share and now expects the metric to grow at least 11% over last year’s level or $4.33 per share for the full year, achieving its 35th consecutive annual growth in earnings.
In terms of total revenues, Fiserv reported an adjusted figure of $3.59 billion in Q3 and $10.29 billion for the Jan-Sep period, which represents a fall by 1 and 4 percent, respectively, in each period compared to its 2019 counterparts.
Additionally, Fiserv’s internal revenue grew 3% in the third quarter, driven by 6% growth in the acceptance segment, 1% growth in the payments segment and the fintech segment was flat compared to the prior year period.
Fiserv’s cash flow increased by 12% to $939 million and by 13% to $2.59 billion in Q3 and first nine months of 2020, respectively, compared to $837 million and $2.30 billion in 2019.
Founded in 1984 and headquartered in Wisconsin, Fiserv’s solutions are now used by more than 40,000 clients in over 100 countries worldwide. The company has also more than one-third of US financial institutions relying on its product suite for account processing solutions and expertise.
Bisignano’s first quarter as CEO
Fiserv’s results have been recalculated to help investors evaluate the company’s operating performance after integrating the financial results of First Data, which were included into the consolidated results from July 2019.
Fiserv Inc acquired the payment technology provider First Data Corporation in a $22 billion all-stock deal.
First Data is a Georgia headquartered firm, which processes $2.4 trillion each year and 2500 transactions per second. It operates as a payment technology company that handles a wide range of services including credit card processing.
“The strength of our business has allowed us to deliver outstanding results in uncertain times. We are, including raising our earnings outlook in anticipation of achieving our 35th consecutive year of double-digit adjusted earnings per share growth while continuing to invest in the future,” said Frank Bisignano, president and CEO of Fiserv.
Bisignano, previously COO and CEO of First Data, succeeded former CEO Jeffery Yabuki in July, with the latter staying on as executive chairman through the end of the year.
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