Fiserv, Inc. (FI) Q2 2023 Earnings Call Transcript

Fiserv, Inc. (NYSE:FI) Q2 2023 Earnings Conference Call July 26, 2023 8:00 AM ET

Company Participants

Julie Chariell - Senior Vice President of Investor Relations

Frank Bisignano - Chairman, President and Chief Executive Officer

Robert Hau - Chief Financial Officer

Conference Call Participants

David Togut - Evercore ISI

Darrin Peller - Wolfe Research

Tien-Tsin Huang - JPMorgan

Lisa Ellis - MoffettNathanson

Jason Kupferberg - Bank of America Merrill Lynch

David Koning - Baird

Bryan Keane - Deutsche Bank

Ashwin Shirvaikar - Citi

Operator

Welcome to the Fiserv 2023 Second Quarter Earnings Conference Call. All participants will be in a listen-only mode until the question-and-answer session begins following the presentation. As a reminder, today’s call is being recorded.

At this time, I would like to turn the call over to Julie Chariell, Senior Vice President of Investor Relations at Fiserv.

Julie Chariell

Thank you, and good morning. With me on the call today are Frank Bisignano, our Chairman, President and Chief Executive Officer; and Bob Hau, our Chief Financial Officer.

Our earnings release and supplemental materials for the quarter are available on the Investor Relations section of fiserv.com. Please refer to these materials for an explanation of the non-GAAP financial measures discussed in this call, along with the reconciliation of those measures to the nearest applicable GAAP measures. Unless otherwise stated, performance references are year-over-year comparisons.

Our remarks today will include forward-looking statements about, among other matters, expected operating and financial results and strategic initiatives. Forward-looking statements may differ materially from our actual results and are subject to a number of risks and uncertainties. You should refer to our earnings release for a discussion of these risk factors.

And now I’ll turn the call over to Frank.

Frank Bisignano

Thank you, Julie, and thank you all for joining us today to discuss another very good quarter for Fiserv. Our results continue to demonstrate strong performance in revenue and operating income with second quarter organic revenue growth of 10%, led by performance in Merchant Acceptance, particularly in our international regions, and our Payments and Network segment.

Adjusted earnings per share of $1.81 was up 16%, and adjusted operating margin of 36.5% was up 300 basis points. All three measures are tracking ahead of our previous guidance for the full year.

As we look to the remainder of 2023, we note that economists’ expectations have improved for GDP and consumer spending relative to the start of the year. But those economists also forecast a modest macro slowdown from the first half, in part due to higher anticipated unemployment and the reinstatement of student loan repayment.