(Reuters) – Payments firm Fiserv raised its annual profit forecast on Wednesday and reported second-quarter earnings that rose 31% on the back of higher spending by affluent customers.
WHY IT’S IMPORTANT
Consumer spending grew in the second quarter on hopes of a soft landing for the economy, where inflation falls without a recession or big job losses.
Wisconsin-based Fiserv collects fees from merchants, banks and credit unions for processing transactions. Such fees are determined by consumer spending volumes.
BY THE NUMBERS
The company, which provides payments and financial services technology offerings, forecast 2024 adjusted profit per share between $8.65 and $8.80, above its previous expectations of $8.60 and $8.75.
Analysts were expecting a profit of $8.71 per share, according to LSEG data.
Fiserv’s processing and services revenue rose to $4.14 billion in the second quarter from $3.92 billion.
The company’s total quarterly revenue rose 7.4% to $5.12 billion, compared with estimates of $4.82 billion.
Fiserv earned $894 million, or $1.53 per share, in the quarter ended June 30, compared with $683 million, or $1.10 per share, a year earlier.
MARKET REACTION
The payments firm’s shares were up marginally at $158.50 in trading before the bell. The stock has gained a little more than 18% in 2024.
(Reporting by Pritam Biswas in Bengaluru; Editing by Shreya Biswas and Shounak Dasgupta)
