Fiserv Shares Down After Q3 Results Miss Street

(RTTNews) - Fiserv Inc. (FISV) Wednesday reported a third-quarter profit and revenues that fell short of Wall Street analysts estimates, sending its shares down 5% in extended session.

Fiserv reported third-quarter profit of $227 million or $0.55 per share, down from $232 million or $0.54 per share last year. Adjusted earnings for the quarter were $0.75 per share, up from $0.61 per share last year. On average, 19 analysts polled by Thomson Reuters estimate earnings of $0.77 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter grew 1% to $1.41 billion from $1.40 billion last year. Analysts had a consensus revenue estimate of $1.43 billion for the quarter.

Payments segment recorded 6% growth, while Financial segment grew 7%.

"We delivered another quarter of strong financial results in line with our expectation for internal revenue growth acceleration and excellent bottom-line performance," said CEO Jeffery Yabuki. "We completed the acquisition of the debit payment assets of Elan Financial Services which expands our reach and further enhances our growth profile."

Looking forward to the full year, Fiserv continues to expect internal revenue growth of at least 4.5%. The company now expects its adjusted earnings to be in a range of $3.10 to $3.15 per share. Analysts currently estimate earnings of $3.14 per share.

"We remain on track to achieve our key financial metrics for the year, including internal revenue growth acceleration and our 33rd consecutive year of double-digit adjusted earnings per share growth," said Yabuki.

FISV closed Wednesday's trading at $79.30, up $1.36 or 1.74%, on the Nasdaq. The stock, however, slipped $3.60 or 4.54% in the after-hours trade.