Fiserv (NASDAQ:FISV) today reported better-than-expected revenue figures for its first quarter.
The company posted Q1 EPS of $1.58 on revenue of $4.55 billion, beating the consensus for EPS of $1.57 on sales of $4.19B. Revenue soared 10% year-over-year, fueled by the Payments and Acceptance outperformance.
Organic revenue surged 13% YoY, easily ahead of the 9.4% expected. On the other hand, the adjusted operating margin of 33.6% missed the expectations of 34.1%.
"Our strong first quarter results reflect our leadership position and focused execution in an uncertain economic environment," said Frank Bisignano, chairman, president and chief executive officer of Fiserv.
Following a Q1 beat, the company raised its FY forecast to $7.30-7.40 from the prior $7.25-7.40. Revenue is now seen rising 8-9% YoY, versus the prior 7-9% growth forecast. Analysts were expecting FY EPS of $7.34 on revenue growth of 7.8%.
“We raised our 2023 organic revenue and adjusted EPS guidance based on our strong first quarter results. Our guidance for the year is tempered only by the potential for a weaker, second-half economy,” the company said.
Goldman Sachs analysts highlighted a beat-and-raise quarter, fueled by “better merchant and payments,” and offset by weaker fintech.
“We believe the beat and raise in the quarter, combined with continued strong results in merchant should be supportive for the stock, and would expect shares to perform well on the back of today’s results,” they said in a note.
Mizuho analysts added:
“FISV's excellence in acquiring, alongside raised guidance, should be well-received. We expect a positive stock reaction.”