Fiserv Cuts Outlook After 2Q Sales Fall

Dow Jones08-06

Fiserv is no longer expecting sales growth this year after revenue fell again in the second quarter.

The digital banking and payments company said Thursday it now expects revenue to be flat to down 1% for the full year, compared with its prior range of 1% to 3% growth.

It also lowered its guidance for adjusted earnings per share to a range of $7.20 to $7.40, down from $8 to $8.30 previously.

Shares slid 12% to $47.70 in pre-market trading.

Profit fell to $627 million, or $1.17 a share, from $1.03 billion, or $1.86 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $1.84, below the $1.91 anticipated by analysts, according to FactSet.

Revenue fell 4% to $5.29 billion. Analysts surveyed by FactSet had forecast revenue of $5.04 billion.

Sales in Fiserv's merchant solutions fell 1%, while its financial solutions segment declined 8%.

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