Shares of Fiserv, Inc. FISV have gained 22.1% in the past year, outperforming the S&P 500’s gain of 14%. The company’s key growth drivers include its strong market position, a healthy product portfolio, significant acquisition synergies and steady flow of new customers.
Fiserv reported mixed results in first-quarter 2018, wherein bottom line surpassed the Zacks Consensus Estimate but the top line missed the same. Adjusted earnings of 76 cents outpaced the consensus mark by 3 cents and improved 22.6% year over year. Total revenues came in at $1.440 million, which missed the consensus mark of $1,442.1 million but increased 3.3% year over year.
The company’s earnings surprise history has been decent. Fiserv surpassed estimates in two of the trailing four quarters, with an average beat of 0.4%. For the second quarter, the consensus estimate has remained unchanged over the past 30 days.
Market Position & Operational Efficiency to Drive Growth
Fiserv’s dominant position in the financial and payments solutions business is expected to continue driving growth. Furthermore, the company’s broad and diverse customer base, efforts to enhance operational efficiency, high recurring revenues and continued technology upgrades are encouraging.
In first-quarter 2018, which is the third year of Fiserv’s ongoing five-year operational effectiveness program, the company achieved $18 million of savings. The savings came on the back of solid labor optimization and procurement benefits. Fiserv is optimistic about achieving its target of $50 million savings by 2018.
Fiserv, Inc. Revenue (TTM)
Fiserv, Inc. Revenue (TTM)Â |Â Fiserv, Inc. Quote
Acquisitions a Key Catalyst
Fiserv continues to expand its product portfolio and enhance its offerings with the help of strategic acquisitions.The company completed four acquisitions — Online Banking Solutions, Inc., PCLender, LLC, Dovetail Group Limited and Monitise plc — in 2017. These buyouts helped the company to improve cash management and digital business banking solutions, and transform payments infrastructure.
