Fiserv Inc (NYSE:FI), a leading global provider of payments and financial services technology solutions, stock rose 0.24% (As on July 25, 11:16:48 AM UTC-4, Source: Google Finance) after the company reported mixed second-quarter 2024 results. Processing and services’ revenues of $4.1 billion increased 5.5% year over year and missed the estimate of $4.2 billion. Revenues in the Product segment were $967 million, up 16.2% from the year-ago quarter and outpacing the estimate of $911.7 million. Revenues from Merchant Acceptance were $2.4 billion, increasing 9.2% year over year and meeting the estimate. The Financial Solutions segment reported revenues of $2.4 billion, a 6% increase from the year-ago figure and meeting the estimate. The adjusted operating margin for the Merchant acceptance segment was 36.6%, up 290 basis points (bps) on a year-over-year basis. The adjusted operating margin for the Financial Solutions segment was 45.9%, flat with the year-ago quarter. Free cash flow was $1.48 billion in the first six months of 2024 compared to $1.47 billion in the prior year period. Net cash provided by operating activities increased 8% to $2.17 billion in the first six months of 2024 compared to $2.01 billion in the prior year period. The free cash flow was $1.48 billion in the first six months of 2024 compared to $1.47 billion in the prior year period.

FI in the second quarter of FY 24 has reported the adjusted earnings per share of $2.13, beating the analysts’ estimates for the adjusted earnings per share by 1.9%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 7 percent to $4.8 billion in the second quarter of FY 24, missing the analysts’ estimates for revenue of $4.9 billion. Organic revenue growth was 18% in the second quarter of 2024, led by 28% growth in the Merchant Solutions segment and 8% growth in the Financial Solutions segment. Adjusted operating margin increased 160 basis points to 38.4% in the second quarter.

Additionally, the company repurchased 10.0 million shares of common stock for $1.5 billion in the second quarter and 20.2 million shares of common stock for $3.0 billion in the first six months of 2024.

For 2024, the company has raised the guidance for adjusted earnings per share to $8.65-$8.80 compared with the $8.60-$8.75 stated previously. The mid-point ($8.73) of the revised guidance is higher than the Zacks Consensus Estimate for earnings of $8.69 per share. Fiserv raised its year-over-year earnings per share growth guidance to 15-17% from the 14-16% mentioned previously. FI expects organic revenues to rise 15-17% year over year.