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Mar 31, 2020
Fiserv Q1 2020 Earnings Report
Fiserv reported solid financial results despite a significant impact from the COVID-19 pandemic.
Key Takeaways
Fiserv's GAAP revenue increased by 151% to $3.77 billion, driven by the acquisition of First Data. Internal revenue growth was 4%. GAAP EPS increased by 2% to $0.57, while adjusted EPS increased by 16% to $0.99. The company withdrew its full-year financial outlook due to economic uncertainties related to COVID-19.
GAAP revenue increased 151% to $3.77 billion.
Internal revenue growth was 4%.
Adjusted earnings per share increased 16% to $0.99.
Company withdraws full year financial outlook due to economic uncertainties associated with COVID-19
Fiserv
Fiserv
Fiserv Revenue by Segment
Revenue by Segment
Merchant Solutions Revenue
CapyFin.comFinancial Solutions Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
Due to the uncertainty surrounding the COVID-19 pandemic and the related negative impact on global economic activity, the company is withdrawing its previously communicated financial outlook for the year.
Positive Outlook
- Strength and resilience of business model
- Improving performance over the last several weeks
- Frank Bisignano to succeed Jeffery Yabuki as Chief Executive Officer as of July 1, 2020
- Company realigned its reportable segments during the first quarter of 2020
- Ongoing relationship with Bank of America to provide processing and other support services to other Bank of America merchant clients following the joint venture's dissolution
Challenges Ahead
- Uncertainty surrounding the COVID-19 pandemic
- Related negative impact on global economic activity
- Possibility that the company may be unable to achieve expected synergies and operating efficiencies from the acquisition of First Data
- Integration may be more difficult, time-consuming or costly than expected
- Operating costs, customer loss and business disruption may be greater than expected following the transaction
Revenue & Expenses
Visualization of income flow from segment revenue to net income