Fiserv Inc, which provides IT services and systems to the financial sector, posted a quarterly profit that beat market expectations on higher processing and services revenue, and raised its 2011 earnings outlook.
Fiserv increased its 2011 adjusted earnings per share forecast to $4.54-$4.60, and continues to expect 2011 adjusted internal revenue growth to be 2-4 percent.
For the third quarter, the company reported a net income of $127 million, or 89 cents a share, compared with $132 million, or 87 cents a share, last year.
On an adjusted basis, the company earned $1.16 a share.
Revenue grew 4 percent to $1.06 billion. Processing and services revenue increased 3 percent to $882 million.
Analysts on average had expected a profit of $1.14 a share, before items, on revenue of $1.06 billion, according to Thomson Reuters I/B/E/S.
Separately, smaller rival Jack Henry & Associates Inc also reported a better-than-expected third-quarter profit helped by an increase in license revenue.
Payment processors like Fiserv, FIS and Jack Henry mainly provide financial institutions with IT systems and services that enable them to carry out their day-to-day operations.
Earlier in the day, FIS reported a quarterly profit above market view, helped by growth in its financial solutions segment.
Fiserv shares closed at $57.13 on Tuesday on Nasdaq. (Reporting by Brenton Cordeiro in Bangalore; Editing by Sriraj Kalluvila)