(Reuters) – Fiserv on Wednesday raised its full-year adjusted profit outlook above Wall Street expectations as the financial services company reported second-quarter results ahead of estimates.
Americans have so far managed to withstand inflationary pressures that have led to an increase in prices of everything from groceries to energy, and have continued to spend on travel and dining out.
Fiserv’s shares rose 2.3% to $133 in premarket trading. The stock has jumped nearly 29% so far this year.
The company said it now expects adjusted earnings per share between $7.40 and $7.50 in fiscal 2023, compared with analysts’ estimates of $7.38, according to Refinitiv IBES data.
Fiserv reported a 9% growth in its acceptance segment and 8% growth in the payments unit for the three months ended June 30. Its fintech arm posted a 2% decline in the second quarter.
“We delivered our ninth consecutive quarter of double-digit organic revenue growth, as we sustained our momentum in merchant acceptance and expanded our digital payments,” CEO Frank Bisignano said.
The world’s largest payments processor Visa on Tuesday forecast annual results in line with Wall Street estimates.
On an adjusted basis, Fiserv earned $1.81 per share in the second quarter, beating estimates of $1.79.
The company’s total revenue rose nearly 7% to $4.76 billion.
(Reporting by Manya Saini in Bengaluru; Editing by Shounak Dasgupta)
