Payments keep pushing Fiserv revenue growth
The power of payments keeps on driving revenue growth upwards for Fiserv – with some healthy Q1 2017 results.
GAAP revenue for the company increased 5% in the first quarter to $1.39 billion, driven by 6% growth in its payments segment and 4% growth in its financial segment, compared to the first quarter of 2016. As reported in its fourth quarter and full year 2016 results, payments was also the power behind that revenue rise.
For its latest Q1 results, Jeffery Yabuki, president and CEO of Fiserv, says it is “off to a good start to the year” and its business model “continues to deliver revenue acceleration, strong sales growth and excellent free cash flow”.
Adjusted earnings per share increased 18% in the quarter to $1.25 compared to the prior year period. While adjusted operating margin expanded 60 basis points to 32.5% in the quarter compared to the prior year period.
Not everything went up. Net cash provided by operating activities was $463 million in the first quarter of 2017 compared with $509 million in the prior year period, a decrease of 9%.
In its outlook for the year, Fiserv continues to expect 2017 internal revenue growth in a range of 4 to 5% and adjusted earnings per share in a range of $5.03 to $5.17, which represents growth of 14 to 17% over $4.43 in 2016.
