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Market Incident

Public · Developing

AI compiled from Infoway · 3 analyzed stories

Fiserv stock climbs as Q3 earnings beat, cost savings guidance revised up

Fiserv stock rose 7.4% in Tuesday premarket trading after stronger-than-expected third-quarter results. The company doubled its Project Elevate cost savings target to $1B from $500M and expects to repurchase $500M of common stock in the fourth quarter.

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What happened

Fiserv reported third-quarter adjusted earnings of $1.75 per share, above the $1.71 estimate but below $2.04 a year earlier. Revenue fell 1% to $5.20 billion, while beating estimates. Its shares rose as much as 12%. The company doubled its cost-savings target to $1 billion and plans a $500 million stock buyback.

Global impact / market context

The earnings and revenue beat estimates, and the higher savings target and planned buyback may support investor confidence. But earnings were lower than a year earlier and revenue declined, so the results also show weaker performance on those measures.

What to watch

  1. Check whether Fiserv reports progress toward its $1 billion cost-savings target; this shows whether the larger goal is being pursued.
  2. Check whether Fiserv completes the planned $500 million stock buyback in the fourth quarter; the plan has not been reported as completed.
  3. Check whether future earnings and revenue keep beating estimates; the latest results beat estimates but were below the prior year's earnings and revenue.

Affected assets

  • Fiserv Inc. common stock

Evidence