Fiserv Reports Third Quarter 2024 Financial Results Showcases Strong Segment Performance
Intellectia.AI
Fiserv Reports Third Quarter 2024 Financial Results, Showcases Strong Segment Performance
Fiserv, Inc. (NYSE: FI), a prominent global provider of payments and financial services technology solutions, has announced its financial results for the third quarter of 2024.
Key Financial Metrics
| Metric | Q3 2024 | YoY Change | 2023 Year-to-Date | YoY Change |
|---|---|---|---|---|
| GAAP Revenue | $5.22 billion | +7% | $15.21 billion | +7% |
| GAAP EPS | $0.98 | -37% | $3.74 | +6% |
| Adjusted EPS | $2.30 | +17% | $6.29 | +18% |
Fiserv demonstrated solid financial performance with GAAP revenue and adjusted EPS both increasing year-over-year, despite a notable decline in GAAP EPS due to a non-cash impairment charge. The company's robust operational cash flow and free cash flow growth highlight its strong cash generation capabilities.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue Growth | Guidance Comparison |
|---|---|---|
| Merchant Solutions | +9% GAAP, +24% Organic | Above Guidance |
| Financial Solutions | +5% GAAP, +6% Organic | In Line with Guidance |
The Merchant Solutions segment led the growth with impressive revenue increases both on a GAAP and organic basis, outperforming expectations. Financial Solutions maintained steady growth, in line with previous forecasts.
Key Developments and Operational Highlights
- Fiserv realigned its reportable segments to enhance operational performance.
- Named #1 on the 2024 IDC FinTech Top 100 Rankings for the second consecutive year.
- Repurchased 7.6 million shares for $1.3 billion in the third quarter.
Executive Commentary
Frank Bisignano, Chairman, President, and CEO, stated, 'We are pleased with our third-quarter performance, which showcases strength across both our Merchant and Financial Solutions segments. This is anchored in our privileged position at the intersection of merchant and financial institution ecosystems.'
Dividends and Share Repurchase Program
The company repurchased 27.8 million shares for $4.3 billion year-to-date, underlining its commitment to returning value to shareholders. No dividend announcements were made in the release.
Forward Guidance
Fiserv has raised its 2024 outlook, anticipating 16% to 17% organic revenue growth and adjusted EPS ranging from $8.73 to $8.80.
Stock Price Movement
Following the earnings release, Fiserv's stock experienced a modest decline of 0.59%.
Overall, Fiserv's third quarter performance reflects its sustained growth trajectory, bolstered by strategic segment realignment and a robust outlook for 2024.
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