Fiserv, a leading digital payment technology provider, saw its shares reach an all-time high on Wednesday following the release of its impressive quarterly earnings report. The company exceeded analysts' expectations on both revenue and earnings, fueled by the strong performance of its Clover business.
Fiserv shares surged to a record high on Wednesday, driven by the company's better-than-anticipated earnings report. The stock closed at $229.53, surpassing its previous peak reached in November and marking a remarkable 60% increase over the past year. Fiserv, a publicly traded company since 1986, specializes in providing digital payment technology to a diverse clientele, encompassing small businesses and financial institutions. The company announced adjusted earnings of $2.
51 for the quarter, exceeding the consensus analyst estimate of $2.48, according to LSEG. Revenue demonstrated a robust 7% increase, reaching $5.25 billion compared to $4.92 billion in the previous year, comfortably surpassing the anticipated $4.96 billion. A standout performer was Clover revenue, which skyrocketed 29% from the year-ago quarter and achieved a remarkable $2.7 billion for the full year of 2024. Clover comprises payment hardware and software, empowering businesses to streamline their receivables and payables.Fiserv emphasized that Clover is a pivotal driver of its growth trajectory, highlighting that its relationships with 3,500 U.S. banks present a valuable opportunity to expand market penetration and diversify product offerings. Fiserv's CEO, Frank Bisignano, stated that the company's strength stems from the successful integration of First Data and Fiserv, a feat that others have attempted but ultimately failed to achieve. This consolidation enables Fiserv to cater to a wide range of clients, from small enterprises to major corporations like McDonald's and Walmart, as well as nearly every bank in the country. Fiserv recently announced the appointment of a new CEO-elect who will report to Bisignano, who intends to remain in his current role until June 30 or upon confirmation by the U.S. Senate. For 2025, Fiserv projects revenue growth between 10% and 12%, surpassing analysts' expectations of approximately 8%. The company forecasts adjusted earnings of $10.10 to $10.30 for 2025, aligning closely with Wall Street's consensus of $10.21.Following the report, Mizuho reaffirmed its buy recommendation for Fiserv, citing the company's extensive distribution network and Clover's exceptional performance. In a separate analysis, Mizuho suggested that Fiserv and other payment companies could benefit from the Trump administration's tariffs due to increased payment processing stemming from rising prices. The Clover business, in particular, is poised to reap significant rewards as transaction volumes surge at restaurants and other small businesses. However, analysts also identified a few potential risks to Fiserv's momentum, including a possible slowdown in new U.S. merchant customers and bank consolidation.
FISERV Earnings Revenue Clover Payments Technology Stock Market
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