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fiservShares plunged 44% on Wednesday, their worst day ever, after the fintech company lowered its profit outlook and revamped some of its management team.
“Our current performance is not where we would like it to be nor what our stakeholders expect,” CEO Mike Lyons said in a release.
Fiserv now expects full-year adjusted earnings of $8.50 to $8.60 per share, down from its previous forecast of $10.15 and $10.30. Sales are expected to increase by 3.5% to 4%, compared with the previous forecast of 10%.
Lyons said on Wednesday’s earnings call that the deteriorating economic environment in Argentina has led to slower growth and disappointing margins. Last year, the South American country contributed 10 percentage points to an organic growth rate of 16%, he said.
Fiserv’s original growth forecast “assumed that our business outside of Argentina would grow significantly faster than the historical mid-single-digit range to compensate for the slowdown,” he said.
Adjusted earnings were $2.04 per share, below LSEG’s estimate of $2.64. Sales rose about 1% year-on-year to $4.92 billion, falling short of expectations of $5.36 billion. Net income increased to $792 million from $564 million in the year-ago period.
In conjunction with these results, Fiserv announced a number of executive and board changes.
Starting in December, Executive Director Takis Georgakopoulos will serve as co-president with Divya Suryadevara, most recently CEO of UnitedHealth Group’s Optum Financial Services and Optum Insights. Fiserv also promoted Paul Todd to finance director.
“We also have the opportunity to improve our performance and execution, and I am confident that they are the right leaders to lead Fiserv to long-term success,” Lyons said in a separate release.
Fiserv also announced that Gordon Nixon, Celine Dufetel and Gary Schedlin will join the company’s board of directors in early 2026, with Nixon serving as independent chairman of the board. Schedlin will serve as head of the audit committee.
The Milwaukee, Wisconsin-based company also announced an action plan that Lyons said will put the company in a better position to “drive sustainable, high-quality growth” and “realize its full potential.”
Fiserv announced next month that its stock will be moved from the New York Stock Exchange to the Nasdaq, where it will trade under the ticker symbol “FISV.”
Fiserv did not immediately respond to CNBC’s request for comment.
