Fiserv, Inc. (FISV) Fourth Quarter Review

Analysts Kartik Mehta and John Healy at Northcoast Research have released a report reviewing the fourth quarter at Fiserv, Inc. (NASDAQ: FISV).

The company reported fourth quarter results in line with analysts’ estimate. Fiserv reported revenue of $1 billion, a 2.3% increase over the previous year. The adjusted EPS of $0.94 for the fourth quarter came in line with consensus forecast. The overall operating margin improved by 90 basis points in 2009 compared to the previous year.

However, the company reported a margin decline of 20 basis points in the fourth quarter. The company repurchased $1.1 million of its stock and made a debt repayment of $140 million in the fourth quarter. The company had free cash flow of $668 million in 2009.

Analysts have lowered the 2010 EPS estimate by $0.05 to $4. Analysts expect free cash flow of $700 million in 2010. The company expects to generate internal revenue growth of 1%-3% in 2010 and improve margin by at least 50 basis points.

Analysts at Northcoast Research have a Buy rating for Fiserv, Inc. According to analysts, the key drivers of the Fiserv stock are improving margins and free cash flow, predictability of revenue, demand for company’s critical products and services , and reduction of debt and return of capital to shareholders.