Payment processor Fiserv, Inc. (FISV: Quote) said Monday after the markets closed that its second quarter profit surged 79% from last year, as revenue increased amid an expanding client base.
The company's quarterly earnings per share, excluding items, also came in above analysts' expectations.
At the same time, the company reaffirmed its full year 2012 revenue forecasts and raised the low end of its full year earnings outlook range.
"We achieved strong earnings and sales performance in the quarter consistent with our full year expectations," said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. "The continuing strength in the sales of our leading channel, payment and account processing solutions is providing strong forward momentum."
Fiserv shares are currently losing 3.81% in after hours trading after closing the day's regular trading session at $72.25, down 13 cents. The shares trade in a 52-week range of $48.75 to $72.93.
The company signed 109 electronic bill payment clients, 34 debit clients and 136 person-to-person clients in the second quarter.
During the quarter, 129 clients committed to offer Mobiliti from Fiserv. Through June 30, the company has signed more than 1,100 financial institutions to its mobile banking solutions.
For the second quarter ended June 30, 2012, the Brookfield, Wisconsin-based company reported net income of $161 million or $1.17 per share, compared to $90 million or $0.62 per share for the year-ago quarter.
Income from continuing operations for the second quarter was $163 million or $01.18 per share, compared to $97 million or $0.67 per share in the prior year quarter.
The prior year quarter results included a loss from early debt extinguishment of $0.26 per share.
Excluding items, adjusted earnings per share from continuing operations for the second quarter was $177 million or $1.28 per share, compared to $163 million or $1.13 in the second quarter of last year.
On average, 19 analysts polled by Thomson Reuters expected the company to earn $1.26 per share for the second quarter. Analysts' estimates typically exclude special items.
Total revenue for the second quarter rose 3% to $1.10 billion from $1.07 billion a year ago, while adjusted revenue grew 3% to $1.03 billion from $1.00 billion last year. Fifteen analysts had a consensus revenue estimate of $1.12 billion for the second quarter.
During the second quarter, Fiserv repurchased 2.1 million shares of its common stock for $143 million and had about 9 million shares remaining under its existing share repurchase authorizations as of June 30.
Fiserv said it continues to expect 2012 adjusted revenue growth of 4% to 6%. The company also said it now expects adjusted earnings for the year to be in a range of $5.08 to $5.20 per share, compared to its prior guidance of $5.04 to $5.20 per share. Analysts currently expect the company to earn $5.18 per share on revenue of $4.56 billion for the full year 2012.
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by RTT Staff Writer
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