UPDATE 2-Fiserv Q1 profit tops Street view, cuts 2008 outlook
(Adds conference call details)
April 30 (Reuters) - Financial services processing provider Fiserv Inc (FISV.O: Cotización) posted a higher quarterly profit, topping analysts' expectations, helped by a 46 percent jump in processing and services revenue, but lowered its 2008 outlook.
"We have revised our 2008 revenue and earnings per share guidance to reflect the new terms in our electronic bill payment contract with Bank of America which had not been considered in our previous guidance," CEO Jeffery Yabuki said.
During the quarter, Fiserv and Bank of America (BAC.N: Cotización) agreed to an extension of contract for Fiserv to provide bill payment services through 2013.
The contract extension will hurt 2008 earnings by about 9 cents a share, Yabuki said in a conference call.
Bank of America received a one-time discount for the services and the new contract pricing will decrease revenue this year by about $25 million, Yabuki added.
Fiserv cut its outlook for 2008 adjusted earnings from continuing operations to a range of $3.28 to $3.40 a share, from its previous forecast of $3.33 to $3.47 a share.
The company now expects 2008 adjusted internal revenue growth of 4 percent to 6 percent, down from its prior view of a 5 percent to 7 percent growth.
"The primary factors impacting revenue growth are the Bank of America repricing, further declines in flow of revenue, and larger clients unexpectedly exiting the home equity business," Yabuki said in the call. Continuación...