The Fiserv (FI) earnings report proved disastrous for the firm. FI stock lost a historic 44.04% to close at 70.60 on Wednesday.
Fiserv posted $4.92 billion in revenue (+0.8% Y/Y). It cut its organic revenue growth forecast to 3.5% to 4%. FI stock looks cheap, but the net debt to EBITDA of around three times is not ideal. Sellers emerged after the firm forecast that organic growth would fall from 10% to 12% to 4% to 5%.
Adobe Systems (ADBE) dropped by 6.13% to close at $337.86. Wall Street analysts praised the firm after its MAX event. However, the stock is still in the dog house, joining Starbucks (SBUX) and Nike (NKE).
ADP (ADP) fell by 6.58%. It posted a solid Q1, where both earnings and revenue grew by 7%. ADP is forecasting revenue to grow by 5% to 6%. Next fiscal year, growth rises slightly to 5% to 7%. Investors are fearful about the soft employment environment. That would keep ADP in value territory.
Stride (LRN) plunged by 54.37% on Wednesday. The firm blamed a technology rollout disruption for the increase in withdrawals. As a result, enrollment was around 10,000 to 15,000 fewer than what the firm could have achieved.
Stride’s peers to consider include TAL Education (TAL) and Adtalem Global (ATGE).
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