What To Expect From Fiserv in 2018?

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February 28, 2018 — 10:24 am EST

Fiserv Inc. ( FISV ), a provider of financial services technology, reported fourth-quarter earnings this month. 2017 was a fairly decent year for the company, with Q4 EPS marginally beating estimates. Overall, revenue for the company grew by 3.5% year-on-year to $53.6 billion, while the Diluted EPS increased from $4.15 in 2016 to $5.78 in 2017. The top line growth was driven by an expanding client base, and solid performance in card processing and account processing services. DNA Platform and Mobiliti ASP have also seen client base growth.

Driven by the growth potential of the DNA platform and Mobiliti ASP, we expect Fiserv to post stronger results in 2018. Our EPS estimate for 2018 is around $6.20. Our interactive dashboard outlines the company's performance and the outlook for 2018, and you can modify key drivers and forecasts to see how changes would impact the company's results for this year.

Fiserv's DNA Platform To See Strong Adoption In 2018

DNA is a real-time account processing platform, with an open architecture that allows it to be molded per client requirements. In 2017, DNA adoption grew by 30%. In 2018, we expect that Fiserv will engage with larger clients, as it did in Q4'17 by signing a deal with Sallie Mae. This, along with Agiliti, a cloud core banking service for the UK financial industry, will drive the Financial Segment Revenue to around $2.6 billion.

Mobiliti ASP Will Gain Traction In Asia Pacific

Mobiliti ASP, which provides banking services on mobile devices, has more than 6.5 million users. With the acquisition of Monitise, Fiserv will be able to leverage FINkit which will further enhance its capabilities. Additionally, with the APAC region becoming more receptive to mobile payments, we expect Fiserv to secure more partnerships.