Fiserv, Inc. (FISV) has reported a 13.76 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $215 million, or $0.98 a share in the quarter, compared with $189 million, or $0.81 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $254 million, or $1.16 a share compared with $233 million or $1 a share, a year ago.
Revenue during the quarter grew 4.61 percent to $1,431 million from $1,368 million in the previous year period. Gross margin for the quarter expanded 260 basis points over the previous year period to 46.82 percent. Total expenses were 73.79 percent of quarterly revenues, down from 75.95 percent for the same period last year. This has led to an improvement of 216 basis points in operating margin to 26.21 percent.
Operating income for the quarter was $375 million, compared with $329 million in the previous year period.
However, the adjusted operating income for the quarter stood at $435 million compared to $394 million in the prior year period. At the same time, adjusted operating margin improved 160 basis points in the quarter to 30.40 percent from 28.80 percent in the last year period.
"Results in 2016 were punctuated by our 31st consecutive year of double-digit adjusted earnings per share growth, operating margin expansion and excellent free cash flow," said Jeffery Yabuki, president and chief executive officer of Fiserv. "Our strong sales performance sets us up to accelerate internal revenue growth in 2017."
For financial year 2017, Fiserv, Inc. projects revenue to grow in the range of 4 percent to 5 percent. The company forecasts diluted earnings per share to be in the range of $5.03 to $5.17 on adjusted basis.
Operating cash flow improves
Fiserv, Inc. has generated cash of $1,431 million from operating activities during the year, up 6.32 percent or $85 million, when compared with the last year. The company has spent $554 million cash to meet investing activities during the year as against cash outgo of $360 million in the last year.
The company has spent $852 million cash to carry out financing activities during the year as against cash outgo of $1,005 million in the last year period.
Cash and cash equivalents stood at $300 million as on Dec. 31, 2016, up 9.09 percent or $25 million from $275 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Fiserv, Inc. has turned negative to $92 million on Dec. 31, 2016 from positive $4 million on Dec. 31, 2015. Current ratio was at 0.95 as on Dec. 31, 2016, down from 1 on Dec. 31, 2015.
Days sales outstanding went up to 29 days for the quarter compared with 27 days for the same period last year.
Debt moves up
Fiserv, Inc. has witnessed an increase in total debt over the last one year. It stood at $4,562 million as on Dec. 31, 2016, up 6.27 percent or $269 million from $4,293 million on Dec. 31, 2015. Total debt was 46.82 percent of total assets as on Dec. 31, 2016, compared with 45.96 percent on Dec. 31, 2015. Debt to equity ratio was at 1.80 as on Dec. 31, 2016, up from 1.61 as on Dec. 31, 2015. Interest coverage ratio improved to 8.93 for the quarter from 8.44 for the same period last year.
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