Fiserv, Inc. (Nasdaq:FISV) announced today strong earnings for the third quarter of 2005.
Net income per share-diluted from continuing operations for the third quarter of 2005 was $0.58 per share, compared to $0.53 per share for the third quarter of 2004. Processing and services revenues were $925.3 million, an increase of 10% over the third quarter of 2004.
For the nine month period ended Sept. 30, 2005, Fiserv processing and services revenues were $2.7 billion, a 10% increase over the first nine months of 2004. Net income per share-diluted from continuing operations (excluding realized gain from sale of investment of $0.14 per share) was $1.74 per share compared to $1.50 per share for the first nine months of 2004.
"We are very pleased with our third quarter results and we are forecasting full year 2005 earnings per share from continuing operations of $2.28 to $2.31 (excluding $0.14 per share from a realized gain from sale of investment). Our businesses continued their strong performance and the ongoing emphasis on our organic growth initiatives is producing positive results in 2005," said Leslie M. Muma, president and chief executive officer of Fiserv. "We are also very excited about our recent acquisitions, including BillMatrix in our Financial segment which serves the rapidly growing electronic bill payment space and adds to our extensive payment capabilities."
Fiserv also completed the acquisitions of J.W. Hutton, an insurance recovery management services provider in the Health segment, and VerticalPoint, a provider of software solutions to automate new business and underwriting workflows for insurance carriers and their distribution channels in the Financial segment.
Fiserv repurchased 4.4 million shares of its common stock in the third quarter of 2005 and a total of 10.8 million shares in 2005. The Company has 7.4 million shares authorized for repurchase at Sept. 30, 2005 under the current stock buy-back plan.
OUTLOOK FOR THE FULL YEAR
Fiserv has updated its earnings and revenue outlook for the full year. For the full year of 2005, processing and services revenues are estimated to be approximately $3.66 billion to $3.68 billion ($940 to $960 million for the fourth quarter) and net income per share-diluted from continuing operations is estimated to be $2.28 to $2.31 per share (excluding realized gain from sale of investment of $0.14 per share) ($0.54 to $0.57 per share for the fourth quarter). These estimates for the full year exclude any positive earnings associated with the anticipated receipt of a large contract termination fee from a client being acquired by another financial institution. Internal revenue growth rates for the full year 2005 are projected to be in the mid-single digits in the Financial and Investment segments and low double digits in the Health segment.
RENEWED AND NEW CLIENT RELATIONSHIPS
Significant client renewals and other new relationships gained in the third quarter include the following: Toyota Credit Canada, Inc. expanded its relationship with the LeMans unit of Fiserv to include the LeMans Loan Origination System; Fiserv's Personix unit will provide output services to Putnam Investments through an agreement that will give Personix a significant new distribution center in the Boston area; Fiserv's IPS-Sendero unit signed license agreements with HSBC Australia and Arab National Bank of Riyadh, Saudi Arabia, for risk management software; Fiserv Imagesoft extended its relationship with Viewpointe Archive Services LLC through additional licenses of its FraudGuard Positive PayPlus product in support of Viewpointe member banks; Sterling Financial Corp., a $2.8 billion diversified financial services corporation based in Lancaster, Pa., expanded its already significant relationship with Fiserv to include the Enterprise Relationship Management Software Suite; and mBank, a $276 million-asset financial institution based in Manistique, Mich., chose Fiserv for a comprehensive technology package that includes core processing, Internet banking, ATM/debit processing and branch capture of check images. In addition, Fiserv's Information Technology, Inc. (ITI) unit signed agreements with three banks to provide software for in-house core account processing: Capital Bank, a $927 million asset institution in Raleigh, N.C.; Penn Security Bank & Trust Co., a $567 million asset bank in Scranton, Pa., and Progressive Bank, a $275 million asset bank in Winnsboro, La.Download the document now 44.1 kb (Adobe Acrobat Document)