Fiserv announces preliminary fourth quarter and full year 2018 results and 2019 outlook
BROOKFIELD, WI (January 16, 2019) — Fiserv, Inc. (NASDAQ:FISV), a leading global provider of financial services technology solutions, in connection with entering into a definitive merger agreement to acquire First Data Corporation, today announced selected preliminary financial results for the fourth quarter and full year 2018 and outlook for 2019. Actual results for the fourth quarter and full year 2018 are expected to be reported on Thursday, February 7, 2019.
Preliminary Fourth Quarter and Full Year 2018 GAAP Results
Fiserv expects to report GAAP revenue of $1.55 billion and $5.82 billion for the fourth quarter and full year 2018, respectively, or an increase of 2 percent in each period compared to the prior year periods.
GAAP earnings per share from continuing operations is expected to be in the range of $0.71 to $0.72 for the fourth quarter of 2018, or a decrease of approximately 43 percent compared to the prior year period. GAAP earnings per share from continuing operations is expected to be in the range of $2.87 to $2.88 for the full year, relatively consistent compared to the prior year. GAAP earnings per share from continuing operations in 2018 included a gain of $0.37 per share on the sale of 55 percent interest of the company’s Lending Solutions business (the “Lending Transaction”). GAAP earnings per share from continuing operations in 2017 included discrete tax benefits from the December 2017 enactment of The Tax Cuts and Jobs Act of $0.65 per share and $0.64 per share in the fourth quarter and full year, respectively. The company also completed a two-for-one stock split in the first quarter of 2018. Accordingly, all share data and per share amounts are presented on a split-adjusted basis.
Preliminary Fourth Quarter and Full Year 2018 Non-GAAP Results
Fiserv expects to report adjusted revenue of $1.47 billion and $5.54 billion for the fourth quarter and full year 2018, respectively, or an increase of 2 percent in each period compared to the prior year periods.
Internal revenue growth for the company is expected to be approximately 4.5 percent for both the fourth quarter and full year 2018.
Adjusted earnings per share is expected to be in the range of $0.84 to $0.85 for the fourth quarter of 2018, or an increase of 24 to 25 percent compared to the prior year period. Adjusted earnings per share is expected to be in the range of $3.10 to $3.11 for the full year, or an increase of approximately 25 percent compared to the prior year.
Preliminary Outlook for 2019
Fiserv expects internal revenue growth in a range of 4.5 to 5 percent in 2019. The company also expects adjusted earnings per share in a range of $3.39 to $3.52, which represents growth of 10 to 14 percent over the expected 2018 range, as adjusted for the Lending Transaction. The company’s outlook for 2019 does not include any impact related to the transaction with First Data Corporation.
Agreement to Combine with First Data Corporation
In a separate press release issued today, Fiserv announced that it will combine with First Data Corporation in an all-stock transaction for an equity value of approximately $22 billion. The release is available in the “Investor Relations” section of fiserv.com.
About Fiserv
Fiserv, Inc. (NYSE: FI), a Fortune 500 company, aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale and business management platform. Fiserv is a member of the S&P 500® Index and has been recognized as one of Fortune® World’s Most Admired Companies™ for 9 of the last 10 years. Visit fiserv.com and follow on social media for more information and the latest company news.
