Brookfield-based Fiserv Inc. today reported its fourth quarter and full-year earnings.
The company reported fourth quarter net income of $546 million, or $2.50 per diluted share, up from $215 million, or 98 cents per share, in the fourth quarter of 2016, driven in part by a $275 million tax benefit from the new federal tax law.
Fiserv expects an effective tax rate of 22 to 23 percent in 2018. It plans to use the additional capital to increase its investments over the next couple of years and “take a holistic view of employee benefit plans.”
Fourth-quarter operating income was $425 million, up from $375 million in the fourth quarter of 2016.
Revenue totaled $1.5 billion in the fourth quarter, up from $1.4 billion in the same period a year ago. Fourth quarter revenue benefited from a 7 percent growth in the Payments segment, 4 percent growth in the Financial segment.
For the full year, Fiserv reported net income of $1.2 billion, or $5.71 per diluted share, up from $930 million, or $4.15 per share, in 2016. Its 2017 operating income was $1.5 billion, up from $1.4 billion in the prior year.
Full-year revenue was $5.7 billion, up from $5.5 billion in 2016.
“Fourth quarter results were excellent across the board and contributed to us meeting each of our financial objectives for the year,” said Jeffery Yabuki, president and chief executive officer of Fiserv, in a call with analysts. “The performance in the quarter led to a 22 percent increase in adjusted earnings per share, capping our 32nd consecutive year of double-digit growth.”
Yabuki also announced chief operating officer Mark Ernst will be retiring.
This morning, Fiserv announced it will sell part of its Lending Solutions business for $395 million.
The company also has been evaluating the development of a new headquarters, and as of August had narrowed its search to three potential spots in the Milwaukee area, while leaving its options open for other states. It has not addressed the search since that point.
