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Milwaukee, Wisconsin-based Fiserv, Inc. (FI) provides payments and financial technology services. Valued at $116.8 billion by market cap, the company provides solutions for customer deposit and loan accounts, digital banking, financial and risk management. FI also manages card processing, cardless ATM services, and non-card digital payment solutions for financial institutions and corporate clients. The fintech giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Tuesday, Feb. 4.
Ahead of the event, analysts expect FI to report a profit of $2.48 per share on a diluted basis, up 13.2% from $2.19 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect FI to report EPS of $8.77, up 16.6% from $7.52 in fiscal 2023. Its EPS is expected to rise 16.4% year over year to $10.21 in fiscal 2025.
FI stock has outperformed the S&P 500’s ($SPX) 24.4% gains over the past 52 weeks, with shares up 51.8% during this period. Similarly, it outperformed the Technology Select Sector SPDR Fund’s (XLK) 23.9% gains over the same time frame.
Fiserv’s outperformance is driven by the success of its clover platform, consistent growth initiatives, and its partnership with Automatic Data Processing, Inc. (ADP) to offer integrated small business solutions, coupled with the acquisition of Payfare Inc. (PYFRF) to enhance its embedded finance capabilities.
On Oct. 22, FI shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $2.30 surpassed Wall Street expectations of $2.25. The company’s adjusted revenue was $4.88 billion, missing Wall Street forecasts of $4.89 billion. FI expects full-year adjusted EPS to be between $8.73 and $8.80.
Analysts’ consensus opinion on FI stock is bullish, with a “Strong Buy” rating overall. Out of 35 analysts covering the stock, 26 advise a “Strong Buy” rating, four give a “Moderate Buy,” and five give a “Hold.” FI’s average analyst price target is $229.91, indicating a potential upside of 12% from the current levels.
