Bank technology stocks continued to surge for the second week in a row, this time catching a wave of investor buying throughout the equities markets.
While technology issues rose two weeks ago in the face of a stock market selloff, last week they were lifted as part of a broader market rally. The Dow Jones industrial average climbed more than 30 points for the week, to close near 3,924.
Healthy earnings reports coming from technology companies with significant bank business also helped lift some companies' shares.
Bank technology outsourcer Fiserv Inc. reported third-quarter earnings of $9.5 million, or 24 cents a share, which was a 20% increase from the $7.9 million the company earned in the third quarter of 1993.
Its revenues reached $139.4 million for the quarter, also up 20% from the year-earlier period.
"The third quarter was an active one for the company, as we continue to sign new clients for our services and products, while increasing our market share through acquisition," said George Dalton, chairman and chief executive of Fiserv.
Mr. Dalton noted that, despite his company's failure to agree last month with AT&T Global Information Solutions Corp. to acquire AT&T's bank outsourcing business, the aborted deal "has not affected our ongoing acquisition strategy. There continue to be numerous opportunities in the marketplace for companies to align with the Fiserv vision and mission."
Milwaukee-based Fiserv's common stock closed at $23.50 a share Friday, up $1 for the week.
Payment processor Comdata Holdings Corp. also reported significantly higher third-quarter earnings. Net income for the period was $8.7 million, or 26 cents per share, up from $4.2 million, or 7 cents per share in the corresponding quarter of 1993.
Third-quarter revenues for Nashville-based Comdata hit $63.6 million, up 13.6% from $56 million in the third quarter of 1993.
Comdata's stock closed Friday at $11.75 a share, up 75 cents for the week.
Check printer Deluxe Corp. reported that third-quarter revenues reached $426.7 million, up 14.7% from the third quarter of 1.993, when sales were $372 million.
Net earnings for the period were $33.2 million, or 40 cents per share, compared with $37 million, or 45 cents per share a year ago.
Deluxe's stock closed at $28.375 a share Friday, down $1 on the week.
