Wednesday, financial services technology solutions provider Fiserv, Inc. (FISV), reported a rise in second-quarter profit benefiting primarily from a stake disposition, growth in higher-margin revenue, favorable changes in business mix and operating efficiency. Fiserv noted that results for the quarter reflect the disposition of a 51% interest in its insurance operations. The company also reaffirmed its full-year guidance for adjusted earnings from continuing operations.
The Brookfield, Wisconsin-based company posted a second quarter net income of $140 million or $0.90 per share, compared to $100 million or $0.60 per share a year-ago.
Income from continuing operations increased to $114 million or $0.73 per share from $102 million or $0.62 per share in the prior year. Adjusted income from continuing operations was $140 million or $0.90 per share, compared to $138 million or $0.84 per share a year before.
On average, 18 analysts polled by Thomson Reuters expected the company to earn $0.88 per share for the quarter. Analysts' estimates typically exclude special items.
Adjusted operating margin for the quarter improved 190 basis points to 27.9% year-over-year driven by growth in higher-margin revenue, favorable changes in the company's business mix and operating efficiency.
Commenting on the results, Jeffery Yabuki, President and Chief Executive Officer of Fiserv said, "Our solid earnings and margin results in the face of continuing economic challenges once again demonstrated the strength of our business model. We complemented our economic performance with a number of new significant client relationships resulting from the combination of leading solutions and our enhanced go-to-market approach."
In the preceding first quarter, Fiserv's profit dropped sharply from the prior year on lower revenues. Net income was $103 million or $0.66 per share, compared to $329 million or $1.99 per share a year back. Adjusted earnings from continuing operations were $138 million or $0.88 per share, compared to $132 million or $0.80 per share in the year earlier.
Revenues for the quarter under review quarter declined to $1.03 billion from $1.29 billion in the prior-year quarter. Adjusted revenues declined to $983 million from $1.02 billion in the prior year due primarily to declines in the home equity loan processing business.
Analysts had a consensus revenue estimate of $1.04 billion for the second quarter.
Processing and services revenues declined to $860 million from $947 million, while product revenues plunged to $172 million from $345 million last year.
Segment wise, Financial Institution Services reported revenues of $514 million, compared to $558 million a year ago. Payments and Industry Products segment's revenues increased to $525 million from $514 million last year.
In the first quarter, Fiserv's revenues declined to $1.04 billion from $1.31 billion a year ago, with total adjusted revenue decreasing 3% to $989 million.
For the first six months of the year, Fiserv reported a net income of $243 million or $1.56 per share, compared to $429 million or $2.60 per share in the previous year.
Income from continuing operations for the six-month period was $216 million or $1.39 per share, compared to $201 million or $1.22 per share in the prior year. Adjusted income from continuing operations was $278 million or $1.78 per share, compared to $270 million or $1.63 per share a year ago.
Total revenues for the six-month period decreased to $2.08 billion from $2.60 billion a year earlier. Adjusted revenues were $1.97 billion, compared to $2.04 billion last year.
Looking ahead, Fiserv reaffirmed its full-year 2009 adjusted earnings from continuing operations guidance in the range of $3.61 - $3.75 per share.
Analysts currently expect the company to report earnings of $3.65 per share for the fiscal year 2009.
The company also said it expects positive second half 2009 adjusted internal revenue growth that could result in full-year adjusted internal revenue growth in a range of -2 to 1%.
Among others in the industry, Fidelity National Information Services Inc. (FIS) yesterday reported a plunge in second-quarter profit hurt by lower revenues. The company's net earnings attributable to common stockholders plunged to $59.6 million or $0.31 per share from $72.8 million or $0.37 per share last year. On a non-GAAP basis, net earnings rose to $0.42 per share from $0.34 per share in the prior year. Revenues decreased 4% to $834.8 million.
Another industry peer, Total System Services, Inc. (TSS), also yesterday, posted a decline in second-quarter profit on lower revenues. Net income attributable to the company was $53.4 million or $0.27 per share, compared to net income of $63.1 million or $0.32 per share a year ago. Revenues declined to $412.0 million from $429.6 million last year.
FISV closed Wednesday's regular trading on the Nasdaq at $50.44, up $0.91 or 1.84%. After hours, the stock is down $0.24 or 0.48%. In the past 52-week period, the stock has trended in the range of $27.75 - $54.67, with an average 3-month volume of 1.95 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.