On July 24, 2024, Fiserv Inc (FI, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Fiserv, a leading provider of core processing and complementary services for banks and credit unions, reported significant growth in both revenue and earnings per share (EPS), surpassing analyst estimates.
Company Overview
Fiserv Inc (FI, Financial) is a prominent provider of core processing and complementary services, including electronic funds transfer, payment processing, and loan processing, primarily for small and midsize banks. Following its merger with First Data in 2019, Fiserv also offers payment processing services for merchants, with approximately 10% of its revenue generated internationally.
Q2 2024 Financial Performance
Fiserv Inc (FI, Financial) reported a 7% increase in GAAP revenue to $5.11 billion for the second quarter of 2024, compared to the same period in the previous year. This growth was driven by a 9% increase in the Merchant Solutions segment and a 6% increase in the Financial Solutions segment. For the first six months of 2024, GAAP revenue rose by 7% to $9.99 billion.
GAAP earnings per share (EPS) for the second quarter were $1.53, reflecting a 39% increase from the prior year period. The company's GAAP operating margin also improved, reaching 28.0% in Q2 2024, up from 23.8% in Q2 2023.
Non-GAAP Results and Key Metrics
Adjusted revenue for the second quarter increased by 7% to $4.79 billion, while organic revenue growth was an impressive 18%. Adjusted EPS rose by 18% to $2.13. The adjusted operating margin for Q2 2024 was 38.4%, an increase of 160 basis points from the previous year.
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| GAAP Revenue | $5.11 billion | $4.77 billion | +7% |
| GAAP EPS | $1.53 | $1.10 | +39% |
| Adjusted Revenue | $4.79 billion | $4.48 billion | +7% |
| Adjusted EPS | $2.13 | $1.80 | +18% |
Cash Flow and Share Repurchases
Net cash provided by operating activities increased by 8% to $2.17 billion in the first six months of 2024. Free cash flow remained steady at $1.48 billion. Fiserv repurchased 10 million shares of common stock for $1.5 billion in Q2 2024 and 20.2 million shares for $3.0 billion in the first half of the year.
Outlook for 2024
Fiserv Inc (FI, Financial) has affirmed its 2024 organic revenue growth outlook of 15% to 17% and raised its adjusted EPS outlook to a range of $8.65 to $8.80. This represents a growth of 15% to 17% for the year.
“Fiserv once again delivered strong performance across the business with 18% growth in both organic revenue and adjusted earnings per share,” said Frank Bisignano, Chairman, President, and Chief Executive Officer of Fiserv. “Fiserv’s integrated solutions, deep client relationships, and strategic positioning continue to drive our industry leadership.”
Conclusion
Fiserv Inc (FI, Financial) has demonstrated robust financial performance in Q2 2024, exceeding analyst estimates and showcasing significant growth in both revenue and earnings. The company's strategic initiatives and strong market positioning continue to drive its success, making it a noteworthy entity for value investors and industry stakeholders.
Explore the complete 8-K earnings release (here) from Fiserv Inc for further details.
