Fiserv(FI)Q4 2024 Revenue Report

Stocks fiserv It jumped over 7% on Wednesday after paying companies reported fourth-quarter earnings above expectations and issued guidance that also outperformed estimates.

The stock closed at $229.53, surpassing its previous high in November, up about 60% over the past year. Published in 1986, Fiserv offers digital payment technology to small and medium-sized businesses and financial institutions.

According to LSEG, Fiserv reported an adjusted profit of $2.51 in the quarter. Revenues rose approximately 7% from $4.92 billion in the previous year to $5.25 billion, surpassing the consensus estimate of $4.96 billion.

Clover’s revenues rose 29% from the same period last year, reaching $2.7 billion for the entire year for 2024. Clover products consist of payment hardware and software that helps businesses streamline accounts receivable and payers.

CEO Frank Vignano told CNBC’s “Money Mover” on Wednesday that Clover is a key driver of growth, and Fiserv’s relationship with 3,500 US banks is an opportunity to deepen market penetration and product offerings He said he would provide. Fiserv completed its acquisition of $22 billion in payment processor First Data in 2019.

“The strength of the company is the construction of a company that combines the first data that others have tried with Fiserv, but they didn’t get there,” Bisignano said. He added that the merger will allow the company to serve small and medium-sized businesses, along with almost every bank in the country, as well as major companies such as McDonald’s and Walmart.

Vignano has been appointed President Donald Trump to head the Social Security Agency. Fiserv in January said he nominated Michael Lyons as CEO-Elect and would report to Bisignano. Bisignano said he will be in his current role until June 30 or until “previous confirmation by the US Senate.”

In 2025, Fiserv expects revenue growth of 10% to 12%. Analysts were hoping for growth of around 8%. The company forecasts an adjusted profit of $10.30 from $10.10 in 2025, with inline with Wall Street’s $10.21 consensus.

After the report, Mizuho reaffirmed its purchasing recommendations, citing Fiserv’s distribution network and Clover’s outperformance.

In another report, Mizuho said Fiserv and other payment companies could be beneficiaries of Trump administration’s tariffs due to increased payment processing due to rising prices. In particular, the Clover business says it is profiting as its volume increases in restaurants and other small businesses.

Still, analysts pointed out some risks to Fiserv’s momentum, including a potential slowdown in new US merchant customers and bank consolidation.

– CNBC’s Michael Bloom contributed to this report.