Fiserv’s 1Q16 estimates
Fiserv (FISV) should report its first quarter earnings on May 5. According to consensus data accumulated by Bloomberg, net revenues are expected to be $1.30 billion in 1Q16, 5% higher than the $1.28 billion in revenues reported in 1Q15. Net income is expected to be $232 million for the quarter compared to $215 million in the corresponding period last year. Earnings per share (or EPS) are expected to be $1.02 for the quarter, 15% higher year-over-year. For fiscal 2016 overall, the company expects EPS in the range of $4.32 to $4.44—growth of 12%–15% year over year.
Fiserv has expanded its foothold in the financial and payment solutions business, supported by its broad customer base and various contract wins. Plus, Fiserv continues to add retail and business clients to its Mobiliti ASP solutions, which should drive future growth. However, tightening regulations in the banking and financial services industry (VFH) pose a challenge to FISV. Further, intensifying competition from its peers Fidelity Information Services (FIS) and Jack Henry & Associates (JKHY) could also be a concern.
4Q15 earnings review
The company’s 4Q15 earnings per share (or EPS) of $1.0 were in line with Wall Street (SPY) analysts’ estimates. In the corresponding period last year, the company reported EPS of $0.89. For fiscal 2015, EPS were $3.87—higher than the $3.38 from 2014. The company reported net income of $233 million for the quarter, up 6% year-over-year. Net revenues were $1.4 billion, 4% higher than 4Q14.