Fiserv reports 77% GAAP EPS increase in Q2 2016


Payments and processing technologies and solutions provider Fiserv Inc (NASDAQ:FISV) has reported financial results for the second quarter of 2016.

GAAP revenue for the company increased 5% in the second quarter to $1.36 billion, with 9% growth in the Payments segment and 1% growth in the Financial segment, compared to the second quarter of 2015. GAAP revenue for the company increased 5% in the first six months of 2016 to $2.69 billion, with 8% growth in the Payments segment and 1% growth in the Financial segment, compared to the prior year period.

GAAP earnings per share was $0.94 in the second quarter and $2.21 in the first six months of 2016, increasing 77% and 75%, respectively, compared to the prior year periods. GAAP earnings per share included a net investment gain of $0.39 per share in both the first quarter and first six months of 2016 driven by a sale of a business interest at StoneRiver Group, L.P. (StoneRiver), a joint venture in which the company owns a 49% interest, and debt extinguishment and refinancing costs of $0.25 per share in both the second quarter and first six months of 2015.

GAAP operating margin was 26.6% in the second quarter and 26.0% in the first six months of 2016, increasing 150 basis points and 110 basis points, respectively, compared to the prior year periods.

Net cash provided by operating activities was $687 million in the first six months of 2016 compared with $600 million in the prior year period, an increase of 15%.

Jeffery Yabuki, Fiserv
Jeffery Yabuki, Fiserv

Jeffery Yabuki, President and Chief Executive Officer of Fiserv, said:

Our second quarter results were highlighted by strong growth in the Payments segment leading to double-digit gains in adjusted EPS. Strong sales results in the quarter should add to our momentum in the second half of the year.”

Second Quarter 2016 Non-GAAP Results and Additional Information

  • Adjusted revenue increased 6% in the second quarter to $1.29 billion and 5% in the first six months to $2.55 billion, compared to the prior year periods.
  • Internal revenue growth in the quarter was 4% for the company, driven by 6% growth in the Payments segment and 1 percent growth in the Financial segment.
  • Internal revenue growth was 4% in the first six months of 2016, led by 7% growth in the Payments segment and 1 percent growth in the Financial segment.
  • Adjusted earnings per share increased 14% in the second quarter to $1.08 and increased 17% in the first six months of 2016 to $2.14 compared to the prior year periods.
  • Adjusted operating margin increased 10 basis points to 31.9% in the quarter and increased 40 basis points to 31.9% in the first six months compared to the prior year periods.
  • Free cash flow was $442 million in the first six months of 2016 compared to $439 million in the prior year period. Cash distributions of $140 million in the first half of 2016 from StoneRiver related to the sale of a business interest have been excluded from the company’s free cash flow results.
  • The company repurchased 2.8 million shares of common stock for $283 million in the second quarter and 6.2 million shares of common stock for $604 million in the first six months of 2016. As of June 30, 2016, the company had 11.2 million remaining shares authorized for repurchase.

fiserv

To see the full Fiserv report, click here.

 

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Fiserv reports 77% GAAP EPS increase in Q2 2016

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