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Valued at a market cap of $106.1 billion, Wisconsin-based Fiserv, Inc. (FI) is a leading provider of financial services technology solutions across banking, insurance, healthcare, and investment industries worldwide. The company is expected to announce its fiscal Q3 earnings results on Tuesday, October 22.
Ahead of this event, analysts expect the payment giant to report a profit of $2.25 per share, up 14.8% from $1.96 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. Fiserv’s integrated solutions, deep client relationships, and strategic positioning helped the company surpass the consensus EPS estimate by 1.9% in the most recent quarter.
For fiscal 2024, analysts expect FI to report EPS of $8.74, up 16.2% from $7.52 in fiscal 2023.
Shares of Fiserv are up 37.4% in 2024, outpacing both the S&P 500 Index's ($SPX) 19.7% gains and the Technology Select Sector SPDR Fund's (XLK) 15.3% return over the same time frame.
The ongoing digitization movement triggered by the pandemic has boosted FI’s price performance over the past year. Moreover, the company has also benefited from new client acquisitions and deepening relationships with existing clients.
Moreover, the stock gained 2.5% following the release of Q2 earnings on Jul. 24, driven by solid growth in the Product and Merchant Solutions segment. Additionally, the company raised its full-year earnings guidance, enhancing investor confidence.
Analysts' consensus rating on Fiserv stock is highly bullish, with a "Strong Buy" rating overall. Out of 36 analysts covering the stock, 26 recommend a "Strong Buy," four give a "Moderate Buy," and six advise a "Hold" rating. This configuration is more bullish than two months ago, with 25 analysts suggesting a "Strong Buy."
While FI currently trades above its mean price target of $182.38, the Street-high target of $200 represents a potential upswing of 9.6% from the prevailing price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
