Fiserv Earnings Beat Estimates in Q4, Revenues Fall Marginally Y/Y

Core Insights - Fiserv, Inc. reported mixed results for the fourth quarter of 2024, with earnings exceeding estimates while revenues fell short [1][2]. Financial Performance - Adjusted earnings per share were $2.51, beating the consensus estimate by 1.2% and reflecting a year-over-year increase of 14.6% [2]. - Adjusted revenues totaled $4.9 billion, missing the consensus estimate by 1.1% and showing a slight year-over-year decline [2]. - Processing and services revenues reached $4.3 billion, up 5.8% year-over-year, surpassing the estimate of $4.2 billion [3]. - Product segment revenues were $991 million, an 11.1% increase from the previous year, exceeding the estimate of $961.4 million [3]. - Merchant Acceptance revenues were $2.5 billion, a 10.5% year-over-year increase, beating the estimate of $2.2 billion [4]. - Financial Solutions segment revenues were $2.4 billion, a 3% increase year-over-year, but missed the projection of $2.7 billion [4]. Profitability Metrics - The operating margin for the Merchant Acceptance segment was 39.2%, up 150 basis points year-over-year [5]. - The adjusted operating margin for the Financial Solutions segment was 51.7%, increasing by 330 basis points from the previous year [5]. Balance Sheet & Cash Flow - Fiserv ended Q4 2024 with cash and cash equivalents of $1.2 billion, unchanged from Q3 2024 [6]. - Long-term debt decreased to $23.7 billion from $24.1 billion in the previous quarter [6]. - The company generated $2.2 million in net cash from operating activities and reported free cash flow of $1.9 billion [6]. - Capital expenditure was $399 million, and the company repurchased 6.1 million shares for $1.3 billion during the quarter [6]. Guidance - Fiserv raised its 2024 guidance for adjusted earnings per share to a range of $10.1-$10.3, up from the previous estimate of $8.73-$8.80 [7]. - The updated year-over-year earnings growth guidance is now 15-17%, slightly down from the previous 16-17% [7]. - Organic revenue growth guidance was lowered to 10-12% from the earlier 16-17% [7].