Fiserv: Strong Financial Results, Positive Upward Trend

Last Updated: 20. November 2023By

Fiserv may not be as familiar to most of you as Visa or Mastercard. The US company has specialized in providing financial service providers with technical support to meet the challenges of today’s financial markets. To do this, the company provides information management technologies and associated services to banks, brokers, credit unions, financial planners, investment managers, insurers, leasing companies, pawnbrokers and savings banks.

Fiserv: Profit Increases 108% For the 3rd quarter, the company reported a revenue of $4.87 billion compared to $4.51 billion a year ago. Net income was $952 million compared to $481 billion a year ago. Earnings per share were $1.56 compared to $0.75 in the previous year. That’s a hefty increase of over 108%.

Collaboration between Financial Institutions and Fintechs Accelerates The company has simplified access to its core banking APIs to accelerate innovation throughout the industry. Third-party developers now have immediate access to collaborative workspaces through Banking Hub, a central place to access Fiserv’s banking APIs within the Developer Studio.

Earnings Outlook is Raised And investors like to hear this too: after the good quarterly results, Fiserv has increased its earnings forecast for the full year 2023. For this period, the company now expects organic revenue growth of 11%.

Despite strong upward trend still potential up to 43% Conclusion: From the above chart, you can see that the stock has done well this year. Analysts sentiment is also positive. In total, 24 of 38 analysts recommend a Buy and 14 are Hold. The average analyst price target of $142, which was raised from last month. The highest price target is $175, providing investors with a potential of 43%. A look at the valuation shows that, based on the 2024 earnings estimates, the financial stock is not overpriced with a P/E of 14.