Fiserv, Inc. ((FI)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Fiserv, Inc. was marked by a generally optimistic sentiment as the company reported strong performance in 2024, characterized by significant growth in earnings and revenue, particularly within its Clover segment. Despite encountering some challenges, such as those in Argentina and a slowdown in the issuing segment, the overall tone was positive, emphasizing growth and strategic execution.
Strong Earnings Growth
Fiserv showcased a robust financial performance with an adjusted earnings per share of $8.80, reflecting a 17% increase. This was complemented by an impressive total company organic revenue growth of 16%, underscoring the company’s effective strategies and market strength.
Clover Revenue Success
The Clover segment emerged as a highlight for Fiserv, with revenue growing 29% both for the quarter and the year, reaching $2.7 billion. This growth was driven by value-added solutions and increased hardware sales, demonstrating the segment’s critical role in the company’s overall success.
Significant Shareholder Returns
In a move that underscores its commitment to shareholder value, Fiserv returned $5.5 billion to its shareholders through share repurchases, contributing to a nearly 5% decline in average shares outstanding for the year.
Expansion in Merchant Partnerships
The year 2024 saw Fiserv expand its merchant partnerships, adding 65% more bank partners compared to 2023. The company is now approaching 1,000 financial institutions as partners, marking a significant expansion in its merchant acquiring capabilities.
Global Expansion
Clover’s international presence was strengthened with its expansion into three new countries: Brazil, Mexico, and Australia. This move is set to tap into strong international growth potential and further solidify Fiserv’s global footprint.
Challenges in Argentina
While Fiserv experienced benefits from Argentina’s excess inflation and interest rates, these are expected to be transitory, posing a potential challenge for growth comparisons in 2025.
Issuer Slowdown
The issuing segment faced slower growth during Q4 due to lower volumes in the print and plastic business, which were tied to the broader credit environment. This slowdown presents a potential area of concern moving forward.
Forward-Looking Guidance
Looking ahead to 2025, Fiserv provided optimistic guidance, forecasting 10% to 12% organic revenue growth, over 125 basis points of adjusted operating margin expansion, and 15% to 17% adjusted EPS growth. The company also anticipates approximately $5.5 billion in free cash flow. These projections, excluding transitory factors, highlight Fiserv’s focus on new product launches, strategic partnerships, and international expansion.
In summary, Fiserv’s earnings call painted a picture of a company on a strong growth trajectory, with its strategic initiatives and robust financial performance outweighing the challenges faced. The positive sentiment and forward-looking guidance suggest a promising future for the company, bolstered by its efforts in shareholder returns and global expansion.
