Is a Beat in the Cards for Fiserv (FISV) in Q2 Earnings?

Fiserv, Inc. FISV is scheduled to report second-quarter 2020 results on Aug 5, after market close.

Let's check out how things have shaped up for the announcement.

Q2 Expectations

The Zacks Consensus Estimate for revenues is pegged at $3.26 billion, indicating growth of more than 100% from the year-ago reported figure. This growth may be attributed to strength across all segments —Merchant Acceptance, Financial Technology, and Payments and Network.

Segment-wise, growth in the Merchant Acceptance segment is expected to have been aided by the company’s global presence, diverse industry verticals and broad payment capabilities. International business is expected to have been healthy, with growth in North America, partially offset by COVID impacts in Asia and Europe.

The FinTech segment is expected to have been aided by growth in high quality recurring revenues, which may have been partially offset by the expected decline in periodic revenues. The company is likely to witness rise in Mobiliti ASP subscribers and digital interactions.

The Payments and Network segment is likely to have been aided by card services and output solutions including revenue-synergy benefits, partially offset by lower growth in Biller Solutions and prepaid. The company is expected to have witnessed growth in its transactional business (especially debit transactions and P2P transactions, which include both Popmoney and Zelle).

Revenue growth and benefits of cost synergies are likely to have boosted Fiserv’s second-quarter 2020 earnings, the Zacks Consensus Estimate for which is pegged at 93 cents per share, indicating growth of 13.4%.

What Our Model Says

Our proven model predicts an earnings beat for Fiserv this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Fiserv has an Earnings ESP of +3.14% and a Zacks Rank #2.

Fiserv, Inc. Price and EPS Surprise

Fiserv, Inc. price-eps-surprise | Fiserv, Inc. Quote

Other Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these also have the right combination of elements to beat on second-quarter 2020 earnings.

Broadridge Financial BR has an Earnings ESP of +2.70% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

FLEETCOR Technologies FLT has an Earnings ESP of +0.83% and a Zacks Rank #2.

Waste Connections WCN has an Earnings ESP of +3.33% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.