Fiserv, Inc. Anticipated Earnings Growth Ahead of Q1 Announcement

With a market capitalization of $110.9 billion, Fiserv, Inc. (FI) specializes in payments and fintech solutions both in the United States and internationally. Headquartered in Milwaukee, Wisconsin, the company operates through two main segments: Merchant Solutions and Financial Solutions. It provides services to banks, credit unions, leasing and finance companies, and retailers, among others.

Upcoming Earnings Report

Fiserv is set to announce its Q1 earnings on Tuesday, April 22. Analysts project that FI will report a profit of $2.07 per share, reflecting an increase of 10.1% from the prior year’s earnings of $1.88 per share. Notably, the company has consistently exceeded analysts’ consensus estimates in each of the last four quarters. In its previous quarter, Fiserv reported an EPS of $2.51, which was 1.2% higher than the consensus estimates.

Yearly Performance Expectations

For the full year 2024, analysts anticipate FI will report an EPS of $10.24, a significant 16.4% rise from the $8.80 recorded in fiscal 2023. Looking ahead, projections suggest a further increase, with EPS expected to soar 17.2% year-over-year to reach $12 in fiscal 2026.

Stock Performance and Analyst Ratings

Throughout the past year, FI shares have risen 26.1%, notably outperforming the S&P 500 Index’s ($SPX) decline of 2.7% and the Technology Select Sector SPDR Fund’s (XLK) 11.1% decrease in the same period.

Following its mixed Q4 results on February 5, FI stock jumped nearly 7.2%. The company achieved 6.8% year-over-year growth in total revenue amounting to $5.3 billion, although this fell short of market expectations. The adjusted operating margin did improve, expanding 180 basis points to 42.9%, leading to a higher-than-expected EPS. Additionally, FI stock gained over 2% on March 31 after The Goldman Sachs Group, Inc. (GS) upgraded it from neutral to buy, setting a price target of $260.

Analysts maintain a strongly optimistic view on FI stock, issuing an overall “Strong Buy” rating. Out of 35 analysts following the stock, 28 recommend “Strong Buys,” four suggest “Moderate Buys,” and three have “Holds.” The average price target of $258.45 indicates a potential upside of 30.2% from its current trading level.

On the date of publication, Aditya Sarawgi did not hold positions in any securities mentioned in this article. All information in this article is intended solely for informational purposes. For further details, please review the Barchart Disclosure Policy here.

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