Fiserv Inc (NYSE:FI) stock rose 1.05% (As on February 6, 11:22:00 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 24. Processing and services’ revenues of $4.3 billion increased 5.8% on a year-over-year basis. Revenues in the Product segment were $991 million, rising 11.1% from the year-ago quarter’s actual. Revenues from Merchant Acceptance were $2.5 billion, rising 10.5% year over year. The Financial Solutions segment reported revenues of $2.4 billion, marking a 3% increase from the year-ago quarter. Fiserv exited the fourth quarter of 2024 with cash and cash equivalents of $1.2 billion, unchanged from the third quarter of 2024. The long-term debt was $23.7 billion in the fourth quarter of 2024 compared with $24.1 billion in the preceding quarter. FI generated $2.2 million in net cash from operating activities, whereas its free cash flow was $1.9 billion. Capital expenditure was $399 million. The company repurchased 6.1 million shares for $1.3 billion in the quarter.

FI in the fourth quarter of FY 24 has reported 15 percent increase in the adjusted earnings per share of $2.51, beating the analysts’ estimates for the adjusted earnings per share of $2.48, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 7 percent to $4.9 billion in the fourth quarter of FY 24, missing the analysts’ estimates for revenue of $4.96 billion. Organic revenue growth was 13% in the fourth quarter of 2024, led by 23% growth in the Merchant Solutions segment and 4% growth in the Financial Solutions segment. Adjusted operating margin increased 180 basis points to 42.9% in the fourth quarter. Adjusted operating margin increased 150 basis points to 39.2% in the Merchant Solutions segment and 320 basis points to 51.7% in the Financial Solutions segment in the fourth quarter of 2024, compared to the prior year period.

The company has raised its 2024 guidance for adjusted earnings per share to $10.1-$10.3 from the previous quarter’s view of $8.73-$8.80. The guided range is higher than the Zacks Consensus Estimate for earnings of $8.77. Fiserv updated its year-over-year earnings growth guidance to 15-17% from the 16-17% provided in the preceding quarter. FI lowered its year-over-year organic revenue growth guidance from the 16-17% mentioned at the end of the previous quarter to 10-12%.