GAAP revenue in the third quarter was $1.26 billion compared with $1.20 billion in the third quarter of 2013. Adjusted revenue was $1.19 billion in the third quarter compared with $1.14 billion in the third quarter of 2013, an increase of 4 percent. For the first nine months of 2014, GAAP revenue was $3.75 billion compared with $3.55 billion for the first nine months of 2013. Adjusted revenue was $3.52 billion in the first nine months of 2014 compared with $3.36 billion in the same period in 2013, an increase of 5 percent.

GAAP earnings per share from continuing operations in the third quarter was $0.95 compared with $0.61 in the third quarter of 2013. The third quarter 2014 GAAP earnings per share from continuing operations included a $0.21 per share gain on the sale of a subsidiary business at StoneRiver Group, L.P. ("StoneRiver"), a joint venture in which the company owns a 49% interest. GAAP earnings per share from continuing operations for the first nine months of 2014 was $2.25 compared with $1.61 for the first nine months of 2013.

Adjusted earnings per share from continuing operations in the quarter increased 10 percent to $0.86 compared with $0.78 in the third quarter of 2013. Adjusted earnings per share from continuing operations in the first nine months of 2014 increased 13 percent to $2.48 compared with $2.19 in the same period of 2013.

"The business performed very well in the quarter, delivering strong results including 8 percent adjusted internal revenue growth in the Payments segment, and record sales performance for the Company," said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. "The strength of our business model combined with growth in high quality revenue, produced excellent adjusted operating margin expansion and free cash flow results."

Third Quarter 2014

• Adjusted revenue increased 4 percent in the quarter to $1.19 billion and 5 percent year to date to $3.52 billion over the prior year periods.
• Adjusted internal revenue growth in the quarter was 5 percent for the company, driven by 8 percent growth in the Payments segment and 1 percent growth in the Financial segment.
• Adjusted internal revenue growth was 4 percent in the first nine months of 2014, led by 7 percent growth in the Payments segment and 2 percent growth in the Financial segment.
• Adjusted earnings per share increased 10 percent in the quarter to $0.86 and increased 13 percent in the first nine months of 2014 to $2.48 compared to the prior year periods.
• Adjusted operating margin increased 70 basis points in both the quarter and first nine months of 2014 to 31.2 percent and 30.5 percent, respectively, compared with the prior year periods.
• Free cash flow increased 17 percent in the quarter and was up 13 percent year to date to $674 million compared with $598 million in the prior year period.
• The company received $63 million in cash distributions in the quarter from StoneRiver, totaling $108 million year to date. These distributions have been excluded from the company's free cash flow.
• The company repurchased 4.2 million shares of common stock in the quarter for $270 million and 13.3 million shares for $789 million in the first nine months of 2014. As of September 30, 2014, the company had 5.2 million shares remaining authorized for repurchase.
• Sales performance increased 27 percent in the quarter and 14 percent in the first nine months of 2014 compared with the prior year periods.
• During the quarter, the company signed its 50th DNA™ account processing client since its acquisition of Open Solutions in January 2013.
• The company signed 152 Mobiliti™ clients in the quarter and as of September 30 the company had over 2,000 mobile banking clients.
• The company signed 85 Popmoney® clients to join the payment network in the quarter, which now includes over 2,300 financial institutions.
• The company signed 77 electronic bill payment clients and 40 debit processing clients in the quarter.

Outlook for 2014

Fiserv continues to expect 2014 adjusted revenue growth in a range of 4 to 5 percent and adjusted internal revenue growth of 4 to 4.5 percent. The company now expects 2014 adjusted earnings per share to be in a range of $3.34 to $3.38, which represents growth of 12 to 13 percent over $2.99 in 2013.

"Given our strong results to date and visibility for the full year, we have increased our adjusted earnings per share guidance and are on-track to achieve strong full year results," said Yabuki. 

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