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Fiserv Rises on Earnings Beat and Strong Guidance

Fiserv is rising after reporting strong second-quarter earnings and upside guidance.
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Shares of Fiserv  (FISV) - Get Fiserv, Inc. Report were rising Tuesday following earnings from the financial services technology that topped analysts' estimates. 

The company reported a 20% year-over-year increase in non-GAAP revenue to $3.86 billion with adjusted earnings per share of $1.37. Analysts were expecting revenue of $3.72 billion and earnings of $1.28.

"We had a very strong quarter driven by both macroeconomic tailwinds and the execution of our business strategy focused on winning business with new and existing clients," said CEO Frank Bisignano.

The firm's adjusted operating margin increased 510 basis points to nearly 34% in the quarter. The company repurchased 5 million shares for $588 million in the quarter. 

For the full year, Fiserv now expects internal revenue growth of 10% to 12% and adjusted earnings per share in a range of $5.50 and $5.60.

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Analysts are expecting earnings of $5.44 a share for the year, according to FactSet. 

"Our agility, speed of implementation and new product launches should continue to accelerate our growth," said Bisignano. 

During the quarter, the company announced a joint venture with Deutsche Bank to create payment acceptance and banking solutions in Germany. That partnership remains subject to regulatory approvals. 

"Our assets and continued innovation position us well to grow faster with financial institutions, fintechs and businesses of all sizes," Bisignano said. 

Fiserv also divested its remaining interest in the Investment Services business and received pre-tax proceeds of $466 million from the deal.