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Fiserv net income drops in Q4; up YOY

04 February 2015  |  1610 views  |  0 Source: Fiserv

Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial services technology solutions, today reported financial results for the fourth quarter and full year 2014.

GAAP revenue in the fourth quarter was $1.32 billion compared with $1.26 billion in the fourth quarter of 2013. Adjusted revenue was $1.23 billion in the fourth quarter compared with $1.19 billion in the fourth quarter of 2013, an increase of 4 percent. For the full year, GAAP revenue was $5.07 billion compared with $4.81 billion in 2013. Adjusted revenue was $4.74 billion for the full year compared with $4.55 billion in 2013, an increase of 4 percent.

GAAP earnings per share from continuing operations in the fourth quarter was $0.73 compared with $0.84 in the fourth quarter of 2013. The fourth quarter 2013 GAAP earnings per share from continuing operations included a $0.21 per share gain on the partial divestiture 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 full year was $2.99 compared with $2.44 in 2013.

Adjusted earnings per share from continuing operations increased 13 percent both in the fourth quarter and for the full year, to $0.89 and $3.37, respectively, compared with $0.79 and $2.99 in the 2013 comparable periods.

“We delivered strong results in 2014 highlighted by adjusted internal revenue growth approaching the top-end of our guidance, and our 29th consecutive year of double digit adjusted earnings per share growth,“ said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “Increased sales, expanded operating margin and record free cash flow add to our momentum as we enter 2015.”

Fourth Quarter and Full Year 2014

  • Adjusted revenue grew 4 percent both in the quarter and for the full year over the prior year periods to $1.23 billion and $4.74 billion, respectively.
  • Adjusted internal revenue growth in the quarter was 4 percent for theenue grew 4 percent both in the quarter and for the full year over the prior year periods to $1.23 billion and $4.74 billion, respectively.
  • Adjusted internal revenue growth in the quarter was 4 percent for the company, driven by 6 percent growth in the Payments segment and 2 percent growth in the Financial segment.
  • Adjusted internal revenue growth was 4 percent for the full year, led by 7 percent growth in the Payments segment and 2 percent growth in the Financial segment.
  • Adjusted earnings per share increased 13 percent in the quarter and for the full year to $0.89 and $3.37, respectively, compared with the prior year periods.
  • Adjusted operating margin was 30.6 percent for the quarter, an increase of 10 basis points compared with the prior year period, and up 50 basis points for the year to 30.5 percent, compared to 2013.
  • Free cash flow was $965 million compared with $887 million in 2013, an increase of 9 percent.
  • The company received $110 million in cash distributions from StoneRiver during the year which have been excluded from the company’s free cash flow.
  • The company repurchased 18.7 million shares for $1.16 billion in 2014 which included 5.4 million shares of common stock in the quarter for $369 million. The company announced a new 20 million share repurchase authorization in the quarter, and had 19.8 million shares authorized for repurchase as of December 31, 2014.
  • Sales performance increased 7 percent in the quarter and 12 percent for the full year 2014 compared with the prior year periods.
  • The company signed 120 Mobiliti™ clients in the quarter and 395 for the full year. As of December 31, 2014, the company had approximately 2,100 mobile banking clients.
  • The company signed 82 Popmoney® clients to join the payment network in the quarter and 305 for the full year. The network now includes nearly 2,400 financial institutions.
  • The company signed 109 electronic bill payment clients and 38 debit processing clients in the quarter leading to 356 electronic bill payment clients and 134 debit processing clients added for the full year.

Outlook for 2015

Fiserv expects adjusted internal revenue to grow in a range of 5 to 6 percent. The company also expects adjusted earnings per share in a range of $3.73 to $3.83, which would represent growth of 11 to 14 percent over $3.37 in 2014.

“We expect acceleration in our adjusted internal revenue growth again in 2015, along with margin expansion, strong free cash flow and continued shareholder-friendly capital allocation,” said Yabuki.

Full figures available here

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