Payment service provider Fiserv has released financial
results for the second quarter of 2024, highlighting significant earnings growth. The firm’s revenue increased 7% to $5.11 billion compared to the same
period last year.
Merchant Solutions
This growth was primarily boosted by a 9% rise in the
Merchant Solutions segment and a 6% increase in the Financial Solutions
segment. For the first half of 2024, GAAP revenue reached $9.99 billion,
reflecting a 7% year-over-year increase.
Earnings per share (EPS) surged by 39% to $1.53
in Q2 and $2.76 for the first six months of 2024. The company also posted an
operating margin of 28.0% for the quarter, up from 23.8% in the previous year,
showcasing operational efficiency and profitability.
Organic revenue grew 18% in Q2 2024, with the Merchant
Solutions segment leading the charge at 28% growth. The Financial Solutions
segment also performed well, posting an 8% increase. For the first half of the
year, organic revenue experienced a 19% rise, boosted by a 32% growth in the Merchant
Solutions segment.
Adjusted EPS reflected this positive trend, increasing
by 18% to $2.13 in Q2 and to $4 for the first six months of 2024. The
adjusted operating margin also improved, climbing to 38.4% in the second
quarter, a 160 basis point increase from the previous year.
Operational Excellence and Cash Flow
Net cash provided by operating activities increased by
8% to $2.17 billion in the first six months of 2024. Free cash flow was nearly
flat at $1.48 billion compared to $1.47 billion in the prior year period. Fiserv also repurchased 10 million shares of common
stock for $1.5 billion in Q2 and 20.2 million shares for $3.0 billion in the
first half of the year, reflecting confidence in its financial stability and
future growth.
Following the strong performance in the first half of
the year, Fiserv has raised its adjusted EPS outlook for 2024 to a range of
$8.65 to $8.8, representing a growth of 15% to 17%. The company continues to
expect organic revenue growth of 15% to 17% for the full year.
In the first quarter of 2024, Fiserv realigned its
reportable segments to enhance operational performance. The new segments, Merchant Solutions, and Financial Solutions aim to serve its financial institution clients through an integrated portfolio of products and solutions.
This article was written by Jared Kirui at www.financemagnates.com.
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