Fiserv, Inc. (FISV) has reported a 14.53 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $247 million, or $1.13 a share in the quarter, compared with $289 million, or $1.27 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $273 million, or $1.25 a share compared with $241 million or $1.06 a share, a year ago.
Revenue during the quarter grew 4.73 percent to $1,394 million from $1,331 million in the previous year period. Gross margin for the quarter expanded 120 basis points over the previous year period to 46.05 percent. Total expenses were 73.82 percent of quarterly revenues, down from 74.53 percent for the same period last year. This has led to an improvement of 71 basis points in operating margin to 26.18 percent.
Operating income for the quarter was $365 million, compared with $339 million in the previous year period.
However, the adjusted operating income for the quarter stood at $429 million compared to $399 million in the prior year period. At the same time, adjusted operating margin improved 80 basis points in the quarter to 30.77 percent from 29.98 percent in the last year period.
"We are off to a good start to the year producing strong financial results across the company," said Jeffery Yabuki, president and chief executive officer of Fiserv. "Our business model continues to deliver revenue acceleration, strong sales growth and excellent free cash flow."
For fiscal year 2017, Fiserv, Inc. forecasts revenue to grow in the range of 4 percent to 5 percent. The company expects diluted earnings per share to be in the range of $5.03 to $5.17 on adjusted basis.
Operating cash flow declines
Fiserv, Inc. has generated cash of $463 million from operating activities during the quarter, down 9.04 percent or $ 46 million, when compared with the last year period.
The company has spent $154 million cash to meet investing activities during the quarter as against cash outgo of $337 million in the last year period.
The company has spent $301 million cash to carry out financing activities during the quarter as against cash outgo of $164 million in the last year period.
Cash and cash equivalents stood at $308 million as on Mar. 31, 2017, up 8.83 percent or $25 million from $283 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Fiserv, Inc. was negative $175 million on Mar. 31, 2017 compared with negative $66 million on Mar. 31, 2016. Current ratio was at 0.90 as on Mar. 31, 2017, down from 0.96 on Mar. 31, 2016.
Days sales outstanding went down to 54 days for the quarter compared with 55 days for the same period last year.
Debt moves up marginally
Fiserv, Inc. has witnessed an increase in total debt over the last one year. It stood at $4,638 million as on Mar. 31, 2017, up 4.25 percent or $189 million from $4,449 million on Mar. 31, 2016. Total debt was 47.83 percent of total assets as on Mar. 31, 2017, compared with 46.58 percent on Mar. 31, 2016. Debt to equity ratio was at 1.91 as on Mar. 31, 2017, up from 1.66 as on Mar. 31, 2016. Interest coverage ratio improved to 8.69 for the quarter from 8.48 for the same period last year.
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