{"id":359071,"date":"2021-10-28T00:39:00","date_gmt":"2021-10-27T21:39:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/fiserv-stock-logs-worst-day-in-19-months-after-earnings\/"},"modified":"2021-10-28T00:39:00","modified_gmt":"2021-10-27T21:39:00","slug":"fiserv-stock-logs-worst-day-in-19-months-after-earnings","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/fiserv-stock-logs-worst-day-in-19-months-after-earnings\/","title":{"rendered":"#: Fiserv stock logs worst day in 19 months after earnings"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40711ac262d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40711ac262d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/fiserv-stock-logs-worst-day-in-19-months-after-earnings\/#Company_disclosed_loss_of_large_processing_customer_and_underwhelmed_with_parts_of_its_outlook\" >Company disclosed loss of large processing customer and underwhelmed with parts of its outlook<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/fiserv-stock-logs-worst-day-in-19-months-after-earnings\/#Emily_Bary\" >Emily Bary<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#: Fiserv stock logs worst day in 19 months after earnings<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Company_disclosed_loss_of_large_processing_customer_and_underwhelmed_with_parts_of_its_outlook\"><\/span>\n  Company disclosed loss of large processing customer and underwhelmed with parts of its outlook<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\" role=\"region\" aria-label=\"article body\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000462520\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000462520\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Fiserv Inc.\u2019s stock dove to its worst performance in more than 19 months Wednesday after the financial-<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> company discussed the loss of a large processing customer during its earnings call and gave a more muted commentary around the current quarter than some were expecting.<\/p>\n<p> The stock fell 10% in Wednesday trading, making for its steepest single-day percentage decline since March 18, 2020, when it lost 10.9%.<\/p>\n<div class=\"paywall\">\n       Fiserv<br \/>\n        FISV,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204817680\/composite\" class=\"negative\">-10.02%<\/bg-quote><br \/>\n       reported third-quarter net income of $428 million, or 64 cents a share, up from $264 million, or 39 cents a share, in the year-prior quarter. On an adjusted basis, Fiserv earned $1.47 a share, up from $1.20 a share a year earlier and ahead of the $1.45 a share that analysts tracked by FactSet were projecting.<\/p>\n<p>Revenue rose to $4.16 billion from $3.79 billion, while analysts had been looking for $4.12 billion. <\/p>\n<p><strong>Read: How the quirky ways you type, swipe and behave can protect you online<\/strong><\/p>\n<p>The company now expects internal revenue growth of 11% for the full year, along with adjusted earnings per share of $5.55 to $5.60 for the period. The company\u2019s prior outlook was for 10% to 12% revenue growth and $5.50 to $5.60 in adjusted EPS.<\/p>\n<p>Analysts saw several reasons for the stock\u2019s Wednesday selloff, including Chief Executive Frank Bisignano\u2019s mention of the \u201closs of a large processing client through one of our JVs\u201d during the company\u2019s earnings call. <\/p>\n<p>Chief Financial Officer Robert Hau added that Fiserv pointed out the loss \u201cin terms of adjusting our volume and transactions for transparency\u201d but that the situation \u201chas very little impact overall on the actual revenue.\u201d<\/p>\n<p>\u201cIt sounds like they lost S<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>e,\u201d Baird analyst David Koning wrote. While this \u201csounds bad,\u201d he agreed that the loss of this client is \u201croughly immaterial to revenue\u201d since large acquirers and large merchants tend to pay \u201cvery low fees\u201d for each transaction.<\/p>\n<p>On a more positive note, \u201cthe massive growth in Clover comes on at very high yields\u2026probably 10-20x+ the yield of Stripe volumes,\u201d he continued, referring to the company\u2019s Clover business that offers card processing and point-of-sale technology.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Barclays analyst Ramsey El-Assal also suspected that Stripe was the client referenced.<\/p>\n<p>\u201cManagement indicated\u00a0that the client brought processing in-house, rather than a competitor taking the business (though given investor concern regarding competitive pressure from fintechs,\u00a0the loss may have a more outsized impact on sentiment),\u201d he wrote. <\/p>\n<p>Representatives from Stripe and Fiserv didn\u2019t return MarketWatch\u2019s requests for comment on whether Stripe was the customer that left the joint venture.<\/p>\n<p>El-Assal also highlighted that Fiserv suggested fourth-quarter acceptance revenue could be roughly in line with third-quarter revenue. That outlook \u201cis likely somewhat less than investors were hoping for, especially given\u00a0potential support\u00a0from\u00a0the upcoming holiday season,\u201d he noted. <\/p>\n<p>Raymond James analyst John Davis keyed in on Fiserv\u2019s free-cash-flow expectations, which he called the \u201cbiggest concern\u201d coming out of the report. Fiserv expects free-cash-flow conversion of 95% to 100% for the full year, whereas its prior expectation was for at least 108%.<\/p>\n<p>\u201cWhile at this point we do not expect material disruption to management\u2019s target [of] $30 billion in capital allocation over the next five years, we think higher capex is sustainable (reinvesting for growth + Ondot software development), which will weigh on FCF conversion going forward,\u201d Davis wrote. <\/p>\n<p>Shares of Fiserv rivals Global Payments Inc.<br \/>\n        GPN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201234787\/composite\" class=\"negative\">-7.59%<\/bg-quote><br \/>\n       and Fidelity National Information Services Inc.<br \/>\n        FIS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207166559\/composite\" class=\"negative\">-6.69%<\/bg-quote><br \/>\n       lost 7.6% and 6.7%, respectively, in Wednesday\u2019s session. Payment stocks in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> suffered Wednesday: Visa Inc. shares<br \/>\n        V,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203660239\/composite\" class=\"negative\">-6.92%<\/bg-quote><br \/>\n       fell 6.9% after the company delivered a dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointing outlook for its new fiscal year, while Mastercard Inc. shares<br \/>\n        MA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207581792\/composite\" class=\"negative\">-6.05%<\/bg-quote><br \/>\n       declined 6.0%.<\/p>\n<p>Fiserv shares have lost 13.8% over the past three months, as the S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.51%<\/bg-quote><br \/>\n       has risen 3.4%. <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Emily Bary\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/marketwatch.com\/author\/emily-bary\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/emilybary\",\"text\":\"@emilybary\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:ebary@marketwatch.com\",\"text\":\"ebary@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n                <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/marketwatch.com\/author\/emily-bary\"><\/p>\n<h4 itemprop=\"name\" aria-label=\"links to  author page\"><span class=\"ez-toc-section\" id=\"Emily_Bary\"><\/span>Emily Bary<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><\/a>\n          <\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-770E-B84749173837%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#: Fiserv stock logs worst day in 19 months after earnings&#8221; Company disclosed loss of large processing customer and underwhelmed with parts of its outlook Fiserv Inc.\u2019s stock dove to its worst performance in more than 19 months Wednesday after the financial-technology company discussed the loss of a large processing customer during its earnings call&#8230;<\/p>\n","protected":false},"author":1,"featured_media":359072,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-424502\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-359071","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/359071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=359071"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/359071\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/359072"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=359071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=359071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=359071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}