Fiserv (NYSE:FI) shares are getting slaughtered in pre-market trading following Q3 results that missed analyst expectations. At the moment, Fiserv shares are trading down by over 40%, a significant haircut from yesterday’s close.
Fiserv is a publicly traded Fintech that provides payment and banking services. The company reported just of 1% of revenue growth in the quarter and 5% year to date. Fiserv now anticipates 2025 organic revenue growth of 3.5% to 4% and adjusted EPS of $8.50 to $8.60. Previously, Fiserv expected EPS to deliver $10.15 to $10.30 a share.
One analyst said the miss and lackluster guidance was “difficult to understand.”
Q3 and the first nine months of 2024 included a $570 million non-cash impairment charge related to one of the company’s equity investments.
Mike Lyons, Chief Executive Officer of Fiserv, said that along with its earnings report, they had launched One Fiserv, described as an action plan focused on improving client service, value-added technology solutions, and innovation. Lyons added:
“Our current performance is not where we want it to be, nor where our stakeholders expect it to be. As the world’s largest Fintech, Fiserv has the size, scale, and suite of innovative products, networks, and platforms, including Clover, to capitalize on the rapidly evolving finance and commerce landscape. With the actions being announced today, Fiserv will be better positioned to drive sustainable, high-quality growth and reach our full potential.”
Fiserv also announced some leadership changes, with Takis Georgakopoulos and Dhivya Suryadevara becoming co-presidents as of December 1st. Paul Todd will become CFO.
The firm will also migrate its listing from the NYSE to Nasdaq next mont,h where it will trade under the symbol FISV.
Year to date, shareholders are seeing a dramatic destruction of value in the firm. The company’s 52-week high is over $238 a share. This morning, shares of Fiserv are poised to open up at around $80 a share.
