BROOKFIELD, Wis.--(BUSINESS WIRE)--Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial technology solutions, announced today that the company has again been named to the prestigious list of Fortune® “World’s Most Admired Companies™”. This ranking recognizes highly regarded and successful organizations that stand out among their peers for overall corporate reputation. One of the company’s most admired attributes is innovation, recognition of its ongoing commitment to clients to de ...

Fiserv, Inc. (FI) is scheduled to release its fourth-quarter 2023 results on Feb 6, before market open.FI’s earnings surprise history has been decent. It has surpassed the Zacks Consensus Estimate in two of the four trailing quarters and matched on the other two instances. The average surprise is 0.58%.Q4 ExpectationsThe Zacks Consensus Estimate for the top line is currently pegged at $4.69 billion, up 7.5% from the year-ago actual figure. The growth can be considered a perk of having an industry-leading di ...

Brandy Wood, vice president and head of client experience products at Carat from Fiserv, told PYMNTS that despite all the headlines and controversies swirling around artificial intelligence, the concept is nothing new.“It’s been around since the 1950s,” she said in an interview conducted as part of the “What’s Next in Payments: Payments and GenAI” series. Back then, there was initial documentation done on the mathematical feasibility of AI. What hindered its development, perhaps not surprisingly, was the li ...

Fiserv (FI) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 6. On ...

Fiserv, Inc. (NYSE:FI) Q3 2023 Earnings Conference Call October 24, 2023 7:01 AM ET Company Participants Julie Chariell - Senior Vice President of Investor Relations Frank Bisignano - Chairman of the Board, President and Chief Executive Officer Robert Hau - Chief Financial Officer Conference Call Participants Timothy Chiodo - UBS David Togut - Evercore ISI Tien-Tsin Huang - JPMorgan Jason Kupferberg - Bank of America Dan Dolev - Mizuho Securities David Koning - Baird Ramsey El-Assal - Barclays Vasundhara Go ...

Forward-Looking Statements October 24, 2023 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated organic revenue growth, adjusted earnings per share, adjusted earnings per share growth, free cash flow, adjusted operating margin, adjusted operating margin expansion and other statements regarding our future financial performance. Statements can generally be identified as forward-looking beca ...

Interest Expense, Net | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------|-------|----------------|-------|----------------|-------|----------------|-------|--------------| | (In millions) \nInterest expense | $ | 2023 \n(268) | $ | 2022 \n(193) | $ | 2023 \n(715) | $ | 2022 \n(542) | | Interest income | | 10 | | 3 | | 23 | | 8 | | Interest expense, net | $ | (258) | $ | (190) | $ | (692) | $ | (534) | In 2022, the FASB issued ASU No. 2022-03, Fair Value Measureme ...

2 Represents amortization of intangible assets acquired through various acquisitions, including customer relationships, software/technology and trade names. This adjustment does not exclude the amortization of other intangible assets such as contract costs (sales commissions and deferred conversion costs), capitalized and purchased software, financing costs and debt discounts. 3 Represents the company's share of amortization of acquisition-related intangible assets and expenses associated with debt refinanc ...

Financial Data and Key Metrics Changes - The company raised its full-year organic revenue growth outlook to 9% to 11%, up from 8% to 9% previously [4] - Adjusted operating margin is now forecast to improve by at least 150 basis points, an increase from the prior expectation of greater than 125 basis points [4] - Adjusted earnings per share increased by 16% to $1.81, compared to $1.56 in the prior year [72] - Year-to-date adjusted earnings per share increased by 14% to $3.38, at the high end of the annual guidance range [96] - Total company adjusted revenue grew 6% to $4.5 billion, and adjusted operating income grew 16% to $1.6 billion, resulting in an adjusted operating margin of 36.5%, an increase of 300 basis points year-over-year [95] Business Line Data and Key Metrics Changes - Merchant Acceptance segment organic revenue growth was strong at 14% in the quarter and 16% year-to-date [97] - Clover, the cloud-based operating system for small and medium-sized businesses, posted a strong 23% revenue growth for the quarter and 22% year-to-date [10] - Carat, the omni-commerce operating system for enterprise clients, grew revenue by 6% in the second quarter, and 14% excluding the loss of a processing client [99] - The Payments and Network segment posted organic revenue growth of 9% in the quarter, driven by active accounts in North American credit processing and Zelle [123] Market Data and Key Metrics Changes - The international regions grew 31% organically in the second quarter, with strong growth in issuer solutions revenue across all regions [94] - Latin America has been a standout region, contributing about 6% of total company adjusted revenue, largely driven by Argentina and Brazil [89] - Anticipation revenue, reflecting a newer business in Merchant prepayments, has been a significant growth driver in Latin America [94] Company Strategy and Development Direction - The company is focused on sustaining momentum through investments in innovation and enhancing its ISV partner program [74][75] - The integration of CardHub and Mobiliti is seen as a unique investment opportunity that spans two operating segments, Payments and Fintech [77] - The company aims to expand its relationship with Caixa Econômica Federal in Brazil, enhancing card payment options across their bill payment agencies [78] - The company is committed to a disciplined capital allocation strategy, including share repurchases and pursuing high-value acquisitions [108] Management Comments on Operating Environment and Future Outlook - Management noted that spending intentions among financial institution customers remain healthy despite a narrowing of net interest margins [73] - There is an expectation of a modest macro slowdown due to higher anticipated unemployment and the reinstatement of student loan repayments [84] - The company expressed confidence in delivering strong results despite potential economic challenges, with a focus on value-added services and software penetration [98] Other Important Information - The company has repurchased nearly 6% of its shares outstanding over the last 12 months [85] - The upcoming Investor Day is scheduled for November 15, where the company will elaborate on growth strategies and medium-term guidance [109] Q&A Session Summary Question: Acceleration in Clover revenue growth and future expectations - Management indicated that they are in early innings and expect continued growth, emphasizing the need for enablement and merchant demand [18] Question: Demand from banks and consumer trends - Management highlighted strong demand from clients for innovation and technology solutions, with a focus on embedded strategies to help clients grow [19][25] Question: Competitive landscape in Latin America - Management acknowledged recent M&A activity in the region but expressed confidence in their strategic positioning and growth opportunities [28] Question: Merchant revenue growth expectations - Management raised the full-year organic growth outlook for the Merchant business to 14% to 17%, citing strong performance and value-added services [65] Question: Insights on Carat's growth and competitive differentiation - Management views Carat as a double-digit growth engine and expects it to scale over time, focusing on both new client sales and migrating existing clients [44][41]

Acquisitions and Divestitures - The company acquired OrangeData S.A. for $994 million, enhancing its instant payment transaction capabilities[20]. - The company aims to divest businesses not aligned with its market or financial strategies, indicating a focus on strategic acquisitions and dispositions[19]. - The company acquired Merchant One for $302 million, enhancing its merchant distribution and sales force channels[71]. - The acquisition of Finxact, completed on April 1, 2022, was for $645 million, enhancing the company's digital banking strategy[164]. - The company acquired OrangeData S.A. for an aggregate purchase price of $44 million, enhancing instant payment transaction capabilities[166]. Financial Performance - Total revenue for Q2 2023 was $4,756 million, representing a 7% increase from $4,450 million in Q2 2022[46]. - Operating income for Q2 2023 was $1,131 million, a 32% increase from $860 million in Q2 2022, resulting in an operating margin of 23.8%[46]. - Net income attributable to Fiserv, Inc. was $683 million, reflecting a 14% increase from $598 million in Q2 2022[46]. - For the six months ended June 30, 2023, total revenue was $9,303 million, an 8% increase from $8,588 million in the same period of 2022[48]. - Total revenue for 2023 was $9,303 million, an increase of $715 million or 8% compared to 2022[52]. Revenue Segmentation - Processing and services revenue was $3,924 million, accounting for 82.5% of total revenue, with a 6% increase from $3,696 million in the previous year[46]. - Product revenue reached $832 million, which is 17.5% of total revenue, showing a 10% increase from $754 million in Q2 2022[46]. - Acceptance segment revenue increased by $358 million or 10% in the first six months of 2023, driven by higher global merchant acquiring payment volumes[55]. - Payments segment revenue increased by $294 million or 10% in the first six months of 2023, supported by growth in debit and credit processing businesses[57]. - Fintech segment revenue decreased by $19 million or 2% in Q2 2023, primarily due to a decrease in termination fee revenue[56]. Expenses and Costs - The company experienced a decrease in the cost of processing and services to $2,756 million, down 6% from $2,938 million in the previous year[48]. - Interest expense increased to $434 million in the first half of 2023, up 26% from $344 million in the same period of 2022[48]. - Interest expense increased by $90 million or 26% in the first six months of 2023 due to higher interest rates and new debt issuances[69]. Cash Flow and Capital Management - Operating cash flow for the first six months of 2023 was $2.01 billion, an increase of 11% from $1.81 billion in the first six months of 2022[84]. - The company repurchased $2.5 billion of common stock in the first six months of 2023, compared to $1.0 billion in the same period of 2022[87]. - Capital expenditures were approximately 7% of total revenue for the first six months of 2023, down from 8% in the same period of 2022[86]. - The company reported a net income of $784 million for the three months ended June 30, 2023[204]. Assets and Liabilities - Cash and cash equivalents totaled $1.1 billion as of June 30, 2023, with an additional $1.8 billion available under the revolving credit facility[82]. - Total current assets decreased to $21,444 million as of June 30, 2023, down from $27,544 million at the end of 2022[149]. - Total liabilities decreased to $46,722 million as of June 30, 2023, compared to $52,181 million at the end of 2022[149]. - The company’s long-term debt increased to $22,595 million as of June 30, 2023, compared to $20,950 million at the end of 2022[149]. Tax and Income - The effective income tax rate for the first six months of 2023 was 19.2%, compared to 18.2% for the same period in 2022[78]. - Net income per share-diluted was $1.10 for Q2 2023, up from $0.92 in Q2 2022, and $1.99 for the first six months of 2023, compared to $1.94 in the same period of 2022[81]. - Net income for the six months ended June 30, 2023, was $1,271 million, a decrease of 1.6% from $1,291 million in 2022[153]. Market Trends and Strategic Initiatives - The global payments landscape is evolving with increased digital payments and e-commerce, driving competition and the need for modernized technology solutions[26]. - The company’s strategic initiatives include enhancing customer experience and operational efficiency in response to evolving market demands[31]. - The company anticipates continued demand for products that enhance customer interaction with financial institutions, which is expected to create revenue opportunities[39]. Foreign Exchange and Risk Management - The company’s revenue is primarily domestic, but it monitors foreign exchange risks that could impact earnings due to currency fluctuations[33]. - The company experienced foreign currency exchange losses of $50 million for the first six months of 2023, compared to $17 million in the same period of 2022[100].