Fiserv Expects To Record Non-cash Impairment Of Carrying Value Of Equity Method Investment In Wells Fargo Merchant Services JV In Q3; Does Not Expect Impairment To Impact 2024 Adjusted EPS - Filing
Portfolio Pulse from Benzinga Newsdesk
Fiserv expects a non-cash impairment charge of $400-$600 million for its investment in Wells Fargo Merchant Services JV in Q3, but it won't affect 2024 adjusted EPS. The JV, owned 40% by Fiserv and 60% by Wells Fargo, will expire in 2025, with Fiserv receiving compensation based on a contractual valuation.
September 25, 2024 | 8:49 pm
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NEUTRAL IMPACT
Fiserv will record a non-cash impairment of $400-$600 million for its 40% stake in Wells Fargo Merchant Services JV in Q3. This will not impact 2024 adjusted EPS or medium-term performance outlook.
The impairment is non-cash and does not affect Fiserv's 2024 EPS or medium-term outlook, indicating a neutral short-term impact on stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Wells Fargo owns 60% of the Wells Fargo Merchant Services JV, which will see a non-cash impairment recorded by Fiserv. The JV is set to expire in 2025, with no immediate impact on Wells Fargo's financials mentioned.
The news primarily affects Fiserv, with no direct impact on Wells Fargo's financials or stock price in the short term.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50