The fintech company's disappointing growth trends in its merchant business have one analyst concerned that competition is dogging the Clover brand.
Fiserv, Inc.'s Q2 results showed slowing organic growth and margin expansion, intensifying market concerns despite strong cost controls and ongoing capital returns. Clover's growth deceleration and management's damaged credibility are key issues, but the platform remains a market share gainer with international and sector expansion potential. FI shares now reflect excessive pessimism, offering a 7% free cash flow yield and pricing in just 3% long-term growth, which I believe underestimates Fiserv's prospects.
FI posts solid second-quarter 2025 earnings growth, which has boosted full-year EPS outlook, but revenue miss keeps the stock trailing its peers.
Although the revenue and EPS for Fiserv (FI) give a sense of how its business performed in the quarter ended June 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Fiserv (FI) came out with quarterly earnings of $2.47 per share, beating the Zacks Consensus Estimate of $2.41 per share. This compares to earnings of $2.13 per share a year ago.
Fiserv, Inc. is trading at 15x FCF despite the double digit revenue growth, the margin expansion, and the launch of Clover in five new countries. Fiserv launched new specific solutions for verticals like hospitality and healthcare, and is developing its own stablecoin platform. The low valuation multiple allows to reduce the share count by 6% per year.
The mean of analysts' price targets for Fiserv (FI) points to a 31.6% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.
Get a deeper insight into the potential performance of Fiserv (FI) for the quarter ended June 2025 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.
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Investors need to pay close attention to Fiserv stock based on the movements in the options market lately.
Fiserv (FI) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Fiserv (FI) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.