Fiserv reports third quarter 2015 results
Internal revenue growth of 5 percent for the quarter; Adjusted EPS increases 20 percent to $1.03 for the quarter; Full-year outlook affirmed and adjusted EPS guidance raised
BROOKFIELD, WI (October 27, 2015) — Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial services technology solutions, today reported financial results for the third quarter of 2015.
GAAP revenue in the third quarter was $1.31 billion compared with $1.26 billion in the third quarter of 2014. Adjusted revenue was $1.24 billion in the third quarter compared with $1.19 billion in the third quarter of 2014, an increase of 5 percent. For the first nine months of 2015, GAAP revenue was $3.89 billion compared with $3.75 billion for the first nine months of 2014. Adjusted revenue was $3.66 billion in the first nine months of 2015 compared with $3.52 billion in the same period in 2014, an increase of 4 percent.
GAAP earnings per share from continuing operations in the third quarter was $0.92 compared with $0.95 in the third quarter of 2014. GAAP earnings per share from continuing operations included gains on sales of subsidiary businesses at StoneRiver Group, L.P. (“StoneRiver”), a joint venture in which the company owns a 49% interest, of $0.08 per share in the third quarter of 2015 and $0.21 per share in the same period in 2014. GAAP earnings per share from continuing operations for the first nine months of 2015 was $2.18, which also included debt extinguishment and refinancing costs of $0.25 per share, compared with $2.25 for the first nine months of 2014.
Adjusted earnings per share from continuing operations increased 20 percent in the quarter to $1.03 compared with $0.86 in the third quarter of 2014. Adjusted earnings per share from continuing operations in the first nine months of 2015 increased 15 percent to $2.86 compared with $2.48 in the comparable 2014 period.
“Strong performance in the quarter was highlighted by revenue growth acceleration and a 20 percent increase in adjusted EPS,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “Our focus on delivering innovative, high-value client services should drive differentiated client experiences and continued growth.”
Third Quarter 2015
- Adjusted revenue increased 5 percent in the quarter to $1.24 billion and 4 percent year to date to $3.66 billion over the prior year periods.
- Internal revenue growth in the quarter was 5 percent for the company, driven by 6 percent growth in the Payments segment and 4 percent growth in the Financial segment. Foreign currency negatively impacted internal revenue growth by approximately 70 basis points in the third quarter.
- Internal revenue grew 4 percent in the first nine months of 2015, led by 5 percent growth in the Payments segment and 3 percent growth in the Financial segment. Foreign currency negatively impacted internal revenue growth by approximately 60 basis points in the first nine months of 2015.
- Adjusted earnings per share increased 20 percent in the quarter to $1.03 and increased 15 percent in the first nine months of 2015 to $2.86 compared to the prior year periods.
- Adjusted operating margin expanded 190 basis points to 33.1 percent in the quarter and is up 150 basis points to 32.0 percent in the first nine months of 2015 compared to the prior year periods.
- Free cash flow was $666 million in the first nine months of 2015 compared to $674 million in the prior year period. The current year result was negatively impacted by the timing of working capital including a $60 million increase in tax payments compared to 2014.
- During the quarter, the company received $36 million in cash distributions from StoneRiver, $32 million of which has been excluded from the company’s free cash flow.
- The company repurchased 6.0 million shares of common stock in the quarter for $514 million and 12.9 million shares of common stock for $1.05 billion in the first nine months of 2015. As of September 30, 2015, the company had 6.9 million remaining shares authorized for repurchase.
Outlook for 2015
Fiserv expects 2015 internal revenue growth of 5 percent and adjusted earnings per share in a range of $3.84 to $3.87 versus the previous range of $3.73 to $3.83, which now represents growth of 14 to 15 percent over $3.37 in 2014.
“The increase in our adjusted earnings per share guidance reflects the strength of our business model and the value of our solutions,” said Yabuki.
Earnings Conference Call
The company will discuss its third quarter 2015 results on a conference call and webcast at 4 p.m. CT on Tuesday, October 27, 2015. To register for the event, go to www.fiserv.com and click on the Q3 Earnings webcast link. Supplemental materials will be available in the “Investor Relations” section of the website.
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.
