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Wall Street JournalFiserv Gears up to Report Q3 Earnings: How is the Stock Placed?
Fiserv, Inc. FI is scheduled to release its third-quarter 2024 results on Oct. 22, before market open.
See Zacks Earnings Calendar to stay ahead of market-making news.
FI’s earnings surprise history has been decent. It has outpaced the Zacks Consensus Estimate in the trailing quarters, the average surprise being 2.8%.
Fiserv’s Q3 Expectations
The Zacks Consensus Estimate for the top line is pegged at $4.9 billion, suggesting a 6.4% increase from the year-ago quarter’s actual. The top line is believed to have been driven by growth in organic revenues across the Merchant Acceptance and Financial Solutions segments.
We expect Merchant Acceptance and Financial Solutions revenues to grow 9.1% and 5.6% year over year to $2.5 billion and $2.4 million, respectively. An improved performance in the Merchant Acceptance is likely to have been fueled by a surge in Clover revenues. Growth in Zelle transactions and higher demand from clients for FedNow and RTP integration are anticipated to have driven the Financial Solutions segment. The estimate for Corporate and other revenues is pegged at $299 million, implying a 4.2% decline from the year-ago quarter’s actual.
Our estimate for Processing and Services revenues is $4.3 billion, indicating a 6.1% increase from the year-ago quarter’s actual. Our estimate for revenues from the Product segment is pegged at $947.7 million, suggesting 9.6% growth on a year-over-year basis.
The consensus estimate for EPS is pegged at $2.2, implying 14.8% growth on a year-over-year basis. Strong revenue growth and operating margin expansion are likely to have driven the bottom line.
What Our Model Says About FI
Our proven model predicts an earnings beat for Fiserv. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
FI has an Earnings ESP of +0.18% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are a few stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
Corpay, Inc. CPAY: The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $1 billion, indicating year-over-year growth of 5.7%. For earnings, the consensus mark is pegged at $5 per share, implying a 10.5% rise from the year-ago quarter’s actual. The company beat the consensus estimate in the past three quarters and missed in one, with an average surprise of 0.2%.
CPAY has an Earnings ESP of +0.23% and a Zacks Rank of 2. The company is scheduled to declare its third-quarter 2024 results on Nov. 11.
S&P Global SPGI: The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $3.4 billion, suggesting a 10.1% rise from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at $3.5 per share, indicating a 10.3% rise from the year-ago quarter’s reported figure. The company beat the consensus estimate in the past three quarters and missed once, with an average surprise of 5.9%.
SPGI currently has an Earnings ESP of +3.28% and a Zacks Rank of 2. The company is scheduled to declare its third-quarter 2024 results on Oct. 24.
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Fiserv, Inc. (FI): Free Stock Analysis Report
S&P Global Inc. (SPGI): Free Stock Analysis Report
Corpay, Inc. (CPAY): Free Stock Analysis Report