Fiserv Inc (NASDAQ: FISV) stock fell over 2.4% in the pre-market session on Feb 8th, 2019 (Source: Google finance) as Adjusted operating margin was 33.4 percent in the fourth quarter of 2018 compared to 34.0 percent in the fourth quarter of 2017, and was 32.5 percent for the full year compared to 32.8 percent in 2017. Free cash flow for 2018 increased 7 percent to $1.31 billion compared to the prior year. The company repurchased 25.5 million shares of common stock for $1.91 billion in 2018, which included 8.9 million shares of common stock for $689 million in the fourth quarter.
FISV in the fourth quarter of FY 18 has reported the adjusted earnings per share of 84 cents, which is in line with the analysts’ estimates for the adjusted earnings per share of 84 cents, as per Zacks Investment Research. The company had reported the adjusted revenue growth of 2 percent to $1.55 billion in the fourth quarter of FY 18, which is also in line with the analysts’ estimates for revenue of $1.55 billion. Internal revenue growth for the company was 4.5 percent in the fourth quarter of 2018, with 6 percent growth in the Payments segment and 3 percent growth in the Financial segment.
Meanwhile, New York Community Bancorp, Inc., which is the parent company of New York Community Bank, a $51.2 billion in assets financial institution based in Westbury, New York, will advance its retail banking and commercial lending capabilities by converting to a modern, real-time core platform and integrated suite of digital banking and payment solutions from Fiserv. By providing a professionally managed data center and strong suite of integrated solutions, Fiserv is enabling New York Community Bank to deliver an anytime, anywhere banking experience with enhanced digital, business and cash management capabilities to serve its expanding commercial customer base.
On January 16, 2019, Fiserv had entered into a definitive merger agreement to acquire First Data Corporation in an all-stock transaction for an equity value of approximately $22 billion as of the announcement. The transaction is expected to close during the second half of 2019, but after getting regulatory approvals and shareholder approval for both companies
For 2019, Fiserv expects internal revenue growth to be in a range of 4.5 to 5 percent for 2019. The company also expects adjusted earnings per share in a range of $3.39 to $3.52, which represents growth of 10 to 14 percent.