Payments firm Fiserv on Wednesday beat Wall Street estimates for fourth-quarter profit, helped by strong demand in its banking and payments processing unit, sending itssharesup 3.2% in premarket trade.Consumer spending remained robust in the reported quarter, fueled by the Federal Reserve’s rate-cut cycle and hopes of a soft landing for the economy, where inflation falls without triggering a recession or significant job losses. The Wisconsin-based company collects fees from merchants, banks andcreditunions for processing transactions. Such fees are determined by consumer spending volumes.Processing and services revenue, which makes up more than four-fifths of Fiserv’s revenue, rose 5.8% to $4.26 billion in the quarter. Total revenue jumped 6.8% to $5.25 billion in the quarter, compared with analysts’ estimates of $4.96 billion, as per data compiled by LSEG.On an adjusted basis, Fiserv earned $1.44 billion, or $2.51 per share for the quarter ended in Dec. 31, compared with $1.32 billion or $2.19 per share in the year-ago period.Analysts were expecting a profit of $2.48 per share for the quarter. The company also said it expects adjusted profit between $10.10 and $10.30 per share in 2025, compared with analysts’ estimates of $10.21 apiece. Fiserv also expects organic revenue growth in the range of 10% to 12% in 2025.Shares of Fiserv gained 54.6% in 2024, compared with a 34.5% rise for peer FIS in the corresponding period.(You can now subscribe to our ETMarkets WhatsApp channel)
Mer. Feb 5th, 2025
