Fiserv plummets after trimming full-year guidance despite largely positive Q2 results
The payment tech company has now lost over a third of its value this year as growth concerns mount.
Frank's International shares sank over 20% Wednesday morning after the company topped Q2 estimates but narrowed its full-year earnings forecast.
Adjusted earnings per share came in at $2.47 for the quarter, slightly ahead of Street estimates for $2.44. Meanwhile, revenue totaled $5.20 billion, also coming in roughly in line with expectations.
Fiserv provides payments and financial tech services that supports credit unions, traditional banks, and businesses ranging from small merchants to large enterprises. Last month, the company announced plans to launch a new digital asset platform, including a proprietary stablecoin, FIUSD, which boosted shares at the time.
Still, the company is facing profitability pressures. Fiserv now expects 2025 adjusted EPS of $10.15 to $10.30, compared with its previous range of $10.10 to $10.30.
While the forecast is still in line with consensus, the narrowed range reflects recent margin pressure, particularly in its merchant business, as Fiserv integrates a number of recent acquisitions and ramps up its product and marketing spend.
“We’re now at 10% organic growth, so we don’t have quite as much volume to help override or offset some of that M&A activity,” the company said on its earnings call. “[That] caused us to take the full year down from that 125 to 100 basis points.”
Fiserv shares are now down about 37% year to date.
