Fiserv Inc (NASDAQ: FISV) achieved a 16% EPS increase in 4Q2020 despite a 5% GAAP revenue decline caused by the challenging business environment during the global pandemic.
The company reported a $3.83 billion GAAP revenue which represents a 5% decline from the previous quarter. Nevertheless, it still demonstrates the company’s impressive performance in the face of overwhelming business challenges, and underscores the healthy demand for its offerings. The fintech provider’s full year revenue gained by 46% to $14.85 billion. The First Data Corporation acquisition contributed substantially to the revenue growth.
Fiserv managed to achieve the impressive revenue growth figures in 2020 thanks to its focus on critical products that its customers rely on to achieve success. This focus has contributed greatly to the business, especially to its ability to overcome the challenging market conditions in the last 12 months.
“That focus has enabled us to deliver our 35th consecutive year of double-digit adjusted earnings per share growth,” stated Fiserv CEO, Frank Bisignano.
The company’s Acceptance segment gained the most in terms of growth at 115% during the year although it dropped by 7% in Q4. The Payment segment grew by 41% in 2020 but dropped by 1% in Q4. The data indicates strong growth during the year.
2021 forecasts
The latest quarterly and full year report was favorable and it indicates that the company is on the right path. Fiserv provided performance forecast for 2021 assuming that the pandemic’s impact does not extend beyond 1Q2021. The current expectation is that the full year EPS will range between $5.30 and $5.50 which equates to roughly 20% to 24% growth. Achieving this target means the company will maintain its tradition of delivering double digit growth.
Fiserv anticipates an internal revenue growth rate between 8% and 12%. The CEO noted that the company kicked off 2021 with strong sales and good momentum. The company also plans to continue strengthening its business as part of its plan to pursue more growth opportunities while anticipating a more favorable post-pandemic environment to fuel more revenue growth. Fiserv hopes that the unique mix of favorable conditions and its strong business strategy combined with robust offerings will sustain the impressive performance.