First Data Corp.'s net income was down 4% in the first quarter, but analysts did not seem very concerned
The Hackensack, N.J.-based credit card processor racked up profits of $131 million on revenues of $1.2 billion, up 13% from a year earlier.
Per-share profits of 29 cents were a penny shy of consensus estimates in First Call. But far from being disappointed, most analysts said First Data's troubled merchant processing business, one of its three major areas, is "on its way to recovery," as analyst Mark Wolfenberger of Deutsche Morgan Grenfell put it.
Revenue growth at the unit had slowed in recent quarters, but first- quarter revenue was up 10%.
First Data's stock rose TK for the week, closing Friday at TK.
Transaction Systems Architects Inc., Omaha, reported first-quarter revenues of $64.2 million, up 20%. Net income was $7.8 million, up 41%. The company earned 27 cents, beating consensus estimates by a penny despite weak sales in Asia.
The company develops electronic funds transfer software. Its stock price rose TK, to TK.
Fiserv Inc., a Brookfield, Wis.-based bank outsourcer, reported revenues of $273 million, up 33%. Net income of $27.5 million was up 50% and at 49 cents a share met analysts' expectations. Fiserv stock rose TK last week, to TK.
Bank technology stocks edged up slightly for the week, in tune with the market. The Dow Jones industrial average rose TK, to TK. The technology- heavy Nasdaq composite rose TK, to TK. Goldman, Sachs & Co.'s index of U.S.-traded technology companies - which lists many bank technology issues - rose 6.88, to 179.24.