Fiserv posts 36 percent fall in 3rd-qtr earnings

PORTLAND, Ore. - Financial technology company Fiserv Inc., hurt by a loss on a sale of a portion of its business, reported a 36 percent drop in its third-quarter profit.

The Brookfield, Wis.-based company posted net income of $78 million for the quarter, or 48 cents per share, down from $121 million, or 73 cents per share for the year-earlier period.

This year's results include a $25 million loss from the sale of its majority interest in Fiserv Insurance due to tax expense associated with the sale.

Adjusted earning from continuing operations were 81 cents a share, which excluded merger and acquisition costs. Analysts polled by Thomson Reuters expected the company to earn 83 cents per share for the quarter. Analyst estimates typically exclude items.

The company said revenue grew 17 percent to $1.08 billion for the quarter, compared with $924 million in the 2007 quarter.

"Overall, we are pleased with our earnings and free cash flow results for both the quarter and year to date, which are consistent with our expectations. At the same time, internal growth continues to be challenged by market conditions impacting certain areas of our business," said Jeffery Yabuki, president and chief executive of Fiserv.

Shares of Fiserv fell 52 cents in after-hours trading to $33. In regular trading, before the earnings were released, the company's shares closed at $33.52, up $4.57, or 16%.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.