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Fiserv Shares Collapse After Earnings Miss, Guidance Cut, Leadership Shake-Up

Management says a rigorous review found 'financial surprises' alongside Argentina weakness, triggering a reset.

Overview

  • Third-quarter adjusted EPS fell to $2.04 versus about $2.64 expected, with revenue of $4.92 billion missing forecasts and organic growth slowing to roughly 1%.
  • Full-year targets were lowered to 3.5%–4% organic revenue growth and $8.50–$8.60 in adjusted EPS, down from about 10% growth and $10.15–$10.30 per share previously.
  • Shares sank about 44% in their worst single-day drop on record, erasing roughly $30 billion in market value.
  • Fiserv named Paul Todd chief financial officer, appointed Takis Georgakopoulos and Dhivya Suryadevara as co-presidents, outlined a One Fiserv action plan, and will switch its listing to Nasdaq in November under the ticker FISV.
  • Legal pressure intensified with a pending federal class action over alleged inflated Clover growth and a new Hagens Berman investigation into whether investors were misled.