Brookfield-based financial services technology provider Fiserv Inc. reported a higher profit, but flat revenue performance in its fourth quarter.
Fourth-quarter net income was $215 million, or 98 cents per share, up from $189 million, or 81 cents per share, in the fourth quarter of 2015. EPS matched Seeking Alpha’s consensus analyst projection.
Operating income was $375 million, up from $329 million in the same period last year. The cost of processing and services, as well as selling, general and administrative expenses, increased year-over-year. The cost of product decreased.
Revenue totaled $1.4 billion in the fourth quarter, flat from the fourth quarter of 2015. The sales figure missed Seeking Alpha’s consensus analyst projection by $30 million. Processing and services revenue increased slightly year-over-year, but product revenue declined. The Payments segment had 7 percent revenue growth, while the Financial segment saw a 2 percent revenue increase.
“We continue to add high quality revenue to our book of business, even as our 4 percent internal revenue growth was below our initial guidance,” said Jeffery Yabuki, president and chief executive officer of Fiserv, in a call with analysts.
For the full year, net income was $930 million, or $4.15 per share, up from $712 million, or $2.99 per share, in 2015.
Full-year operating income was $1.4 billion, up from $1.3 billion in the prior year.
And 2016 revenue totaled $5.5 billion, up from $5.3 billion in 2015. The company said the implementation of product delays impacted the timing of revenue in the fourth quarter.
“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,” Yabuki said. “Our strong sales performance sets us up to accelerate internal revenue growth in 2017.”