Fiserv reported Thursday modest increases in revenue for the fourth quarter and for full-year 2010, and a Q4 profit of $116 million, or $0.78 per share, compared with $118 million, or $0.76 per share, in Q4 from 2009.
GAAP revenue in the fourth quarter was $1.08 billion, compared with $1.06 billion in 2009; full-year revenue increased from $4.08 billion in 2009 to $4.13 billion in 2010. Adjusted revenue increased 2%, to $1.03 billion, in the fourth quarter; full-year adjusted revenue increased 1%, from $3.87 billion in 2009, to $3.93 billion in 2010.
"We delivered on our commitments of returning to positive revenue growth while increasing earnings and generating a record level of free cash flow," said Jeffery Yabuki, president and CEO of Fiserv, said in a statement. "Our strong performance is the result of our associates delivering for clients every day."
Fiserv is a provider of financial services technology solutions based in Brookfield, Wis.
Earnings per share from continuing operations included a loss from early debt extinguishment, which dropped the EPS to $0.80 for the fourth quarter from $0.83. For the full year, EPS rose from $3.04 in 2009 to $3.34 in 2010. Adjusted EPS increased 13% to $1.06 for the fourth quarter, and full-year adjusted EPS rose 11% to $4.05.
Adjusted internal revenue grew 2% in the fourth quarter and increased 1% for the full year on increases in the Payments and Financial segments.
Adjusted operating margin increased 160 basis points to 29.7% in the fourth quarter. For the full year, adjusted operating margin increased 70 basis points over 2009 to 29.4%.
The company increased free cash flow 10% to a record $735 million in 2010, compared with $668 million in 2009.
In the fourth quarter, Fiserv repurchased 2.9 million shares of common stock for $164 million; in 2010, the company repurchased 8.1 million shares for a total of $418 million. As of Dec. 31, 2010, the company had approximately 6 million shares remaining under its share repurchase authorization.
Additionally, Fiserv signed several new or expanded client relationships in the fourth quarter.
Fiserv expects growth to continue with adjusted internal revenue growth between 2% and 4% in 2011. EPS are expected to grow between 9% and 12% to $4.42 to $4.54 next year.
"Strong sales to new and existing clients reflects our focus on creating value for clients," said Yabuki. "The investments we are making in our industry-leading solutions are building momentum for 2011 and beyond."
Read about Fiserv's third quarter earnings report.
Read AdvisorOne's 2010 Q4 earnings calendar for the financial sector for release dates and links to earnings stories.