Fiserv reported financial results for the first quarter of 2016.

GAAP earnings per share in the first quarter was $1.27 compared with $0.73 in the first quarter of 2015. The first quarter 2016 GAAP earnings per share included a net investment gain of $0.39 per share driven by a sale of a business interest at StoneRiver Group, L.P. (“StoneRiver”), a joint venture in which the company owns a 49% interest. Adjusted earnings per share increased 19 percent to $1.06 compared with $0.89 in the first quarter of 2015.

“We are pleased with our start to the year including 7 percent internal revenue growth in the Payments segment and excellent operating performance,“ said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “Our business model continues to produce high-quality revenue, strong adjusted earnings per share and outstanding free cash flow.”

First Quarter 2016

• Adjusted revenue increased 5 percent in the quarter to $1.25 billion compared with $1.19 billion in the prior year period.
• Internal revenue growth was 4 percent for the company, with 7 percent growth in the Payments segment and 1 percent growth in the Financial segment.
• Adjusted earnings per share increased 19 percent in the quarter to $1.06 compared with $0.89 in the prior year period.
• Adjusted operating margin increased 80 basis points to 31.9 percent in the quarter compared with 31.1 percent in the first quarter of 2015.
• Free cash flow increased 11 percent in the quarter to $298 million compared with $268 million in the prior year period.
• The company received $140 million in cash distributions from StoneRiver related to the sale of a business interest; these distributions and related gain have been excluded from the company’s free cash flow and adjusted earnings per share.
• The company repurchased 3.4 million shares of common stock for $321 million in the first quarter and had 14.0 million remaining shares authorized for repurchase as of March 31, 2016.
• The company completed its purchase of certain assets of ACI Worldwide, Inc.’s Community Financial Services business, further enhancing the company’s suite of digital banking and payments solutions.
• The company expanded its biller solutions business by completing the acquisition of Hewlett Packard Enterprise’s Convenience Pay Services business which enables providers to accept electronic payments from their consumers through multiple channels.
• The company was named as one of FORTUNE® magazine’s World’s Most Admired Companies in the financial data services category for the third consecutive year and number one for Innovation within the category.

Outlook for 2016

Fiserv continues to expect 2016 internal revenue growth in a range of 5 to 6 percent and adjusted earnings per share in a range of $4.32 to $4.44, which represents growth of 12 to 15 percent over $3.87 in 2015.

“Our results in the quarter were ahead of plan and we are well on our way to meet our 2016 financial objectives,” said Yabuki.

Earnings Conference Call

The company will discuss its first quarter 2016 results on a conference call and webcast at 4 p.m. CT on Thursday, May 5, 2016. To register for the event, go to www.fiserv.com and click on the Q1 Earnings webcast link. Supplemental materials will be available in the “Investor Relations” section of the website.