Market Overview

Fiserv's Earnings: A Preview


On Tuesday, October 27, Fiserv (NASDAQ: FISV) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Fiserv management projections, analysts predict EPS of $1.16 on revenue of $3.58 billion. In the same quarter last year, Fiserv posted EPS of $1.02 on sales of $3.13 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 13.73% increase in the company's EPS figure. Sales would be have grown 14.45% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.93 0.99 1.14 0.99
EPS Actual 0.93 0.99 1.13 1.02
Revenue Estimate 3.32 B 3.53 B 3.80 B 3.64 B
Revenue Actual 3.46 B 3.77 B 4.04 B 3.13 B

Stock Performance

Shares of Fiserv were trading at $101.18 as of October 23. Over the last 52-week period, shares are down 5.81%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Fiserv is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: Earnings