Fiserv Gears Up to Report Q1 Earnings: What's in the Offing?

Zacks
21 Apr

Fiserv, Inc. FI is scheduled to release its first-quarter 2025 results on April 24, before market open.

FI’s earnings surprise history has been decent. It has outpaced the Zacks Consensus Estimate in the trailing quarters, the average surprise being 2.9%.

Fiserv, Inc. Price, Consensus and EPS Surprise

Fiserv, Inc. price-consensus-eps-surprise-chart | Fiserv, Inc. Quote

Fiserv’s Q1 Expectations

The Zacks Consensus Estimate for the top line is pegged at $4.9 billion, suggesting a 7.2% increase from the year-ago quarter’s actual. The consensus estimate for EPS is pegged at $2.5, implying 13.2% growth on a year-over-year basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

We anticipate Financial Solutions revenues to increase 6.3% to $2.4 billion from the year-ago quarter’s actual. Revenues from Target and Verizon in issuing, embedded finance with DoorDash, multiple Finxact clients, XD migrations and early adopters of CashFlow central are expected to have fueled this segment’s revenues.

Revenues from Merchant Solutions are expected to be $2.5 billion, growing 12.7% year over year. We expected strong growth in Clover to have improved this segment’s revenues. The estimate for Corporate and other revenues is pegged at $330 million, implying a 4.3% fall from the year-ago quarter’s actual.

Our estimate for Processing and Services revenues is $4.3 billion, indicating 7.7% growth from the year-ago quarter’s actual. Our estimate for revenues from the Product segment is pegged at $988.5 million, suggesting an 11.9% increase on a year-over-year basis.

What Our Model Says About FI

Our model predicts an earnings beat for Fiserv this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

FI has an Earnings ESP of +0.64% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are a few other stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.

Casella Waste Systems, Inc. CWST: The Zacks Consensus Estimate for the company’s first-quarter 2025 revenues is pegged at $412.4 million, indicating year-over-year growth of 20.9%. For earnings, the consensus mark is pegged at 11 cents per share, implying a more than 100% rise from the year-ago quarter’s actual. The company beat the consensus estimate in the past two quarters and missed in the other two, with an average surprise of 49.5%.

CWST has an Earnings ESP of +38.44% and a Zacks Rank of 2. The company is scheduled to declare its first-quarter 2025 results on May 1.

WM WM: The Zacks Consensus Estimate for the company’s first-quarter 2025 revenues is pegged at 6.1 billion, indicating year-over-year growth of 18.2%. The consensus estimate for earnings is pegged at $1.66 per share, implying a year-over-year decline of 5.1%. The company beat the consensus estimate in two of the past four quarters, missed once and met once, with an average surprise of 3.9%.

WM has an Earnings ESP of +0.96% and a Zacks Rank of 3. The company is scheduled to declare its first-quarter 2025 results on April 28.

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Waste Management, Inc. (WM) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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