MILWAUKEE - Fiserv, Inc. (NYSE: NYSE:FI), a leading global provider of payments and financial services technology solutions, has reported a robust first quarter for 2024, with adjusted earnings per share (EPS) outperforming analyst expectations. The company's shares surged 3.6% following the announcement.
For the first quarter of 2024, Fiserv reported adjusted EPS of $1.88, surpassing the analyst estimate of $1.79. This marks a 19% increase compared to the same period last year. GAAP revenue saw a 7% rise to $4.88 billion, while adjusted revenue also climbed 7% to $4.54 billion. However, this figure slightly missed the consensus estimate of $4.57 billion.
Organic revenue growth was particularly strong, with a 20% increase led by the Merchant Solutions segment, which grew by 36%. The Financial Solutions segment also contributed with a 5% growth. The company's GAAP operating margin improved to 24.2%, up from 20.5% in the first quarter of 2023. Adjusted operating margin increased by 180 basis points to 35.8%.
Frank Bisignano, Chairman, President, and CEO of Fiserv, attributed the strong quarter to the company's resilient business model, productivity improvements, innovative product and service offerings, and effective cross-selling strategies.
Looking ahead, Fiserv has raised its adjusted EPS outlook for the full year of 2024 to a range of $8.60 to $8.75, which represents a 14% to 16% growth. This updated guidance is in line with the analyst consensus of $8.63. The company reaffirmed its commitment to a cycle of investment, revenue growth, operating leverage, and capital return, emphasizing its focus on clients, operational excellence, and a robust balance sheet.
The company's share repurchase program also remained active, with 10.2 million shares bought back for $1.5 billion in the first quarter. Additionally, Fiserv completed a public offering of $2.0 billion in senior notes.
Fiserv's continued recognition as an innovative company was underscored by its inclusion in Fortune's America's Most Innovative Companies list for the second consecutive year and Clover's award for Best Overall Commerce Platform in the 2024 Annual FinTech Breakthrough Awards.
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