Fiserv (FISV), a provider of information management and electronic-commerce services, said Tuesday, July 27, its non-adjusted revenue rose to $1.02 billion in the second quarter from $1 billion in last year’s second quarter, while adjusted sales grew 2% to $970 million.
GAAP earnings per share for the Brookfield, Wisc.-based company were $0.85 vs. $0.74 last year, while adjusted EPS were $1.00 compared with $0.90 in 2009. Analysts had expected adjusted EPS of $0.96 for the most-recent quarter on sales of $1.01 billion.
“Our results in the quarter included an acceleration of organic revenue growth, strong sales performance and double-digit growth in earnings per share and free cash flow,” said President and CEO Jeffery Yabuk in a press release.
Adjusted internal revenue grew by 2% in the quarter, reflecting 3% growth in the payments segment and 1% growth in the financial segment, according to the company.
The company’s adjusted operating margin of 29.6% grew 70 basis points compared with the second quarter of 2009 and the first quarter of 2010.
ZashPay, a new person-to-person payments service, was launched in the quarter, and as of June 30, more than 160 financial institutions had committed to offer the service to their customers.
Also in the second quarter, the company announced the acquisition of AdviceAmerica, a provider of integrated advisor-desktop solutions, which includes financial planning, CRM and proposal tools.
Fiserv also signed several new and expanded client relationships in the second quarter with businesses such as BankUnited of Florida, OneWest Bank of Southern California, SunTrust Banks and the Westpac Group of Australia.
The company says it expects full-year adjusted EPS from continuing operations of between $3.96 and $4.07, which represents growth of 8-11%.
The adjusted earnings per share outlook excludes the impact of extraordinary items, merger and integration costs and the amortization of acquisition-related intangible assets.
“We are on track to achieve our 2010 guidance based on solid first half results and a strong sales pipeline,” said Yabuki in a statement.
Read an interview with Fiserv’s Cheryl Nash and AdviceAmerica’s Purna Pareek from the archives of InvestmentAdvisor.com.