Fiserv Earnings Surpass Estimates in Q1, Revenues Increase Y/Y
Fiserv, Inc. FI has reported mixed first-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the mark.
FI's adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis.
The FI stock has gained 41.6% in a year, outperforming the 17.5% rally of the industry it belongs to and the 8.5% rise of the Zacks S&P 500 composite.
Fiserv, Inc. Price, Consensus and EPS Surprise
Fiserv's Quarterly Details
Processing and services' revenues of $4 billion declined marginally on a year-over-year basis and missed our estimate of $4.3 billion. Revenues in the Product segment were $1.1 billion, rising 22.9% from the year-ago quarter's actual and outpacing our expectation of $988.5 million.
Revenues from Merchant Solutions were $2.4 billion, rising 5.3% year over year and missing our estimate of $2.5 billion. The Financial Solutions segment reported revenues of $2.4 billion, marking a 5.8% increase from the year-ago quarter and meeting our projection.
The operating margin for the Merchant Solutions segment was 34.2%, up 10 basis points (bps) on a year-over-year basis. The operating margin for the Financial Solutions segment was 47.5%, increasing 340 bps from the year-ago quarter.
Balance Sheet & Cash Flow of FI
Fiserv exited the first quarter of 2025 with cash and cash equivalents of $1.2 billion, flat with the fourth quarter of 2024. The long-term debt was $27 billion in the first quarter of 2025 compared with $23.7 billion in the preceding quarter.
FI generated $648 million in net cash from operating activities, whereas its free cash flow was $371 million. Capital expenditure was $335 million. The company repurchased 9.7 million shares for $2.2 billion in the quarter.
Fiserv's 2025 Guidance
The company expects adjusted earnings per share of $10.1-$10.3. The guided range is higher than the Zacks Consensus Estimate for earnings of $2.07. Fiserv anticipates year-over-year earnings growth of 15-17%. FI expects year-over-year organic revenue growth of 10-12%.
Fiserv carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots
Equifax Inc. EFX reported impressive first-quarter 2025 results.
EFX's adjusted earnings were $1.53 per share, outpacing the Zacks Consensus Estimate by 9.3% and increasing 2% from the year ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total revenues of $1.4 billion surpassed the consensus estimate by 1.9% and grew 3.6% on a year-over-year basis.
Accenture plc ACN posted mixed second-quarter fiscal 2025 results.
ACN's earnings were $2.82 per share, missing the Zacks Consensus Estimate by a slight margin. The metric increased 1.8% from the year-ago quarter. Total revenues of $16.7 billion beat the consensus estimate by a slight margin but gained 5.4% on a year-over-year basis.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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