Fiserv (FISV) Q4 Earnings Review

Fiserv Inc. (NASDAQ:FISV), being a fintech company, helps financial institutions in processing payments and moving money. It generates revenue primarily through fee income, which is neither linked to interest rates, nor involves credit risk. However, a slowdown in economic activities can hurt its revenue, as they did in 2020 due to the Covid-19 pandemic.

The Brookfield, Wisconsin-based company on Tuesday announced its financial results for the fourth quarter. Its reported earnings of $0.44 per share for the three months ended Dec. 31, up 22 percent from the comparable period of 2019. On an adjusted basis, profit rose 16 percent on a year-over-year basis to $1.30 per share.

Revenue for the quarter fell 5 percent on a year-over-year basis to $3.83 billion. Revenue at the Acceptance segment fell 7 percent, revenue from the Payments business decreased 2 percent, and revenue from the Fintech segment slipped 1 percent in the quarter.

Speaking on the results, CEO Frank Bisignano said in a statement, “Fiserv delivered terrific financial and operational results in 2020 despite the unprecedented market conditions, demonstrating the strength and resilience of our business.”

Fiserv also issued its financial outlook for 2021. It expects to report adjusted earnings in the range of $5.30 per share to $5.50 per share and revenue growth between 8 to 12 percent for the current fiscal year.

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Fiserv shares fell over 1 percent on Wednesday morning after reporting its fourth-quarter results. FISV stock has not gained any value over the past year, as lockdown restrictions slowed down the transaction activity for the most part of 2020, hurting its earnings and revenue. FISV share price has declined nearly 10 percent during the last 12 months, including today’s drop.