Fiserv Beats 3Q Estimates on Rising Sales

Fiserv, a provider of financial-services technology and services, said Tuesday that its third-quarter GAAP revenue was $1.03 billion compared with $992 million in the third quarter of 2009. Equity analysts had estimated that the company’s third-quarter sales would be $1.02 billion.

"We continued to see revenue growth build in the quarter highlighted by 5% payments growth and strong earnings performance," said President and CEO Jeffery Yabuki in a press release.

Adjusted revenue increased 3% to $978 million in the third quarter compared with $945 million in 2009. For the first nine months of 2010, GAAP revenue was $3.06 billion compared with $3.02 billion in 2009, and adjusted revenue increased 1% to $2.90 billion versus $2.86 billion in 2009.

Fiserv, based in Brookfield, Wisc., had GAAP earnings per share from continuing operations in the third quarter of $0.89 compared with $0.79 in 2009.

Adjusted earnings per share from continuing operations in the third quarter increased 13% to $1.04 compared with $0.92 in 2009. Analysts had anticipated adjusted EPS of $0.99.

Third Quarter 2010

Adjusted internal revenue growth was 3% in the quarter, reflecting 5% growth in the payments segment and 2% growth in the financial segment.

The company expanded its consumer payments footprint in the quarter by signing 124 electronic bill payment clients and 59 debit clients. It has signed 374 electronic bill payment clients and 163 debit clients through the first nine months of the year.

Over 270 clients committed to offer ZashPay, Fiserv's new person-to-person payments service, in the quarter. As of Sept. 30, 2010, more than 400 financial institutions have agreed to offer the service.

The company also signed a number of new and expanded client relationships in the quarter with organizations such as the Navy Federal Credit Union, Patelco Credit Union of San Francisco, Standard Chartered PLC, U.S. Bancorp and Virgin Money, the financial services arm of Virgin Group.