Fiserv Inc (NYSE:FI) stock rose 1.03% (As on October 23, 11:21:38 AM UTC-4, Source: Google Finance) after the company reported mixed third-quarter 2024 results. Processing and services’ revenues of $4.2 billion increased 5.7% on a year-over-year basis. Revenues in the Product segment were $978 million, up 13.1% from the year-ago quarter’s actual. Revenues from Merchant Acceptance were $2.5 billion, growing 9.3% year over year. The Financial Solutions segment reported revenues of $2.4 billion, a 4.9% increase from the year-ago quarter. The operating margin for the Merchant acceptance segment was 37.7%, up 290 basis points (bps) on a year-over-year basis. The adjusted operating margin for the Financial Solutions segment was 47.4%, increasing 40 bps from the year-ago quarter. Fiserv exited the third quarter of 2024 with cash and cash equivalents of $1.2 billion, flat with the third quarter of 2023. The long-term debt was $24.1 billion compared with $24.4 billion in the second quarter of 2024. FI generated $2.2 million in net cash from operating activities, whereas its free cash flow was $1.9 billion. Capital expenditure was $402 million. The company repurchased 7.6 million shares for $1.3 billion in the quarter. Free cash flow increased 23% to $3.34 billion in the first nine months of 2024 compared to $2.72 billion in the prior year period.

FI in the third quarter of FY 24 has reported the adjusted earnings per share of $2.3, beating the analysts’ estimates for the adjusted earnings per share of $2.25, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 7 percent to $4.88 billion in the third quarter of FY 24, missing the analysts’ estimates for revenue of $4.89 billion. Organic revenue growth was 15% in the third quarter of 2024, led by 24% growth in the Merchant Solutions segment and 6% growth in the Financial Solutions segment.

The company has updated its 2024 guidance for adjusted earnings per share to $8.73-$8.80 from $8.65-$8.80 mentioned at the end of the previous quarter. The mid-point ($8.77) of the updated guidance is higher than the Zacks Consensus Estimate for earnings of $8.75. Fiserv updated its year-over-year earnings per share growth guidance to 16-17% from the 15-17% stated at the end of second-quarter 2024. FI updated its year-over-year organic revenue growth guidance from the 15-17% mentioned at the end of the previous quarter to 16-17%.