Fiserv’s Latest Product Offering (FIS) (FISV) (MA) (TSS)

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Fiserv, Inc. (FISV) recently launched its latest product named Mobile ID Healthcare Cards. Now, with the help of the new product, the insurance companies will be able to provide easier and more secure access of account information to its clients.

Fiserv’s Mobile ID Healthcare Cards is now accessible through smartphone, iPhone, iPad and Android devices. Several other services such as View Card, Email Card, Fax Card and Order Card shall also be rendered by Fiserv’s new services platform.

As per the Global Mobile Health Market Report 2010 – 2015, the high usage of smarphone applications will immensely encourage the mHealth industry to grow. Moreover, it is expected that out of 1.4 billion smartphone users, the coverage of the industry will reach 500 million in 2015. Furthermore, insurance companies are likely to gain from Fiserv’s superior services through increased demand in the market.

Fiserv’s integrated, wide-ranging suite of products will boost its growth going forward. The company’s adjusted revenues (excluding output solutions postage reimbursements) amounted to $1.03 billion, rising 2.6% year over year but remaining flat sequentially. Revenue growth across the company’s debit, account processing and lending businesses was the primary cause for the annual rise in adjusted revenues for the quarter. For the full year 2012, management projects an annual adjusted revenue growth of 4% – 6% and adjusted internal revenue growth of 3.0% – 4.5%.

However, it is always wise for Fiserv to be extra cautious of competitive strides in the industry. Formidable players to take note of in this regard include Mastercard Incorporated (MA), Fidelity National Information Services, Inc. (FIS) and Total System Services, Inc. (TSS). Moreover, Fiserv faces an ongoing threat from billers and self-sufficient financial institutions that develop and use their own electronic payment transactions and Internet banking solutions.

The current Zacks Consensus Estimates for Fiserv are $1.27 and $5.18 for the third quarter of 2012 and for 2012, respectively. The estimates represent a year-over-year growth of 9.82% for the third quarter and 13.06% for 2012. We currently have a long-term recommendation of ‘Neutral’ for Fiserv. The stock also bears a Zacks #3 Rank, which translates into a short-term rating of ‘Hold’.

FIDELITY NAT IN (FIS): Free Stock Analysis Report

FISERV INC (FISV): Free Stock Analysis Report

MASTERCARD INC (MA): Free Stock Analysis Report

TOTAL SYS SVC (TSS): Free Stock Analysis Report

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