Fiserv Set to Release Fourth-Quarter Earnings: Analysts Predict Growth
Milwaukee, Wisconsin-based Fiserv, Inc. (FI) is a key player in the payments and financial technology sector. With a market valuation of $116.8 billion, Fiserv offers a range of services, including customer deposit and loan account solutions, digital banking, and financial risk management. The company also specializes in card processing, cardless ATM services, and various non-card digital payments for financial institutions and businesses. Investors eagerly await the company’s fiscal fourth-quarter earnings announcement on Tuesday, Feb. 4.
Predicted Earnings Show Promising Growth
Leading up to this event, analysts anticipate that Fiserv will declare a profit of $2.48 per share, reflecting a 13.2% increase from $2.19 per share during the same period last year. Notably, Fiserv has consistently exceeded Wall Street’s expectations in its last four quarterly reports.
For the year ahead, analysts expect Fiserv to report an earnings per share (EPS) of $8.77, marking a 16.6% rise from $7.52 in fiscal 2023. Looking even further, EPS projections for fiscal 2025 suggest an increase of 16.4% to $10.21.
Stock Performance Outshines Competitors
Fiserv’s stock has notably outperformed the broader market, gaining 51.8% over the past 52 weeks compared to the S&P 500’s 24.4% increase. It has also surpassed the Technology Select Sector SPDR Fund’s (XLK) 23.9% growth during the same timeframe.
Driving Factors Behind Growth
The company’s strong performance can be attributed to the success of its Clover platform, robust growth strategies, and a partnership with Automatic Data Processing, Inc. (ADP) aimed at delivering integrated solutions for small businesses. Additionally, the acquisition of Payfare Inc. (PYFRF) has strengthened its embedded finance capabilities.
On Oct. 22, Fiserv shares rose over 1% following the release of its Q3 results. The adjusted EPS was $2.30, exceeding expectations of $2.25. However, the company’s adjusted revenue of $4.88 billion fell short of forecasts set at $4.89 billion. For the full year, Fiserv predicts its adjusted EPS will range between $8.73 and $8.80.
Analysts Are Optimistic About Fiserv Stock
The consensus among analysts is positive, rating Fiserv stock as a “Strong Buy.” Of the 35 analysts monitoring the stock, 26 recommend “Strong Buy,” four suggest “Moderate Buy,” and five say “Hold.” The average analyst price target for Fiserv stands at $229.91, implying a potential upside of 12% from current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
