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Fiserv 1Q Profit Plunges 69 Percent On Charges

The Associated Press

BROOKFIELD, Wis. (AP) — Fiserv Inc. said Thursday its first-quarter earnings plunged 69 percent from a year ago, when the financial technology company reported gains from the spinoff of its insurance technology business.

Quarterly earnings dropped to $103 million, or 66 cents per share, from $329 million, or $1.99 per share in the same period last year.

Last year, earnings were boosted $1.39 per share by after-tax gains on the sale of 51 percent of its stake in Fiserv Insurance Solutions, now known as Stone River, to a private equity fund.

Excluding severance costs, amortization charges and other items, Fiserv said it earned 88 cents per share in the first three months of 2009, beating the Street view. Analysts surveyed by Thomson Financial forecast a profit of 85 cents per share.

Revenue decreased 20 percent to $1.04 billion from $1.31 billion in the year-ago quarter, slightly less than the $1.06 billion Wall Street had expected.

Fiserv reaffirmed guidance for full-year adjusted earnings from $3.61 to $3.75 per share. Analysts are currently looking for a profit of $3.63 per share.