Is this what Mike and the Board were expecting?
And what is with moving back to the NASDAQ - feels like Mike is listening to Jeff Yabuki - "low single digit revenue grower and a durable company".
12 replies (most recent on top)
"even with the right investment and strong execution"
Sick burn.
From the WSJ article post:
This sums it up. Frank is a grifter, liar, and fraudster.
“The new leaders of Fiserv gave investors a harsh reality check: The financial technology company would never be able to hit financial forecasts set by its former boss Frank Bisignano before he left for the Trump administration.”
“It became clear that there were incremental assumptions embedded in our guidance, including outsized business volume growth, record sales activity and broad-based productivity improvements, all of which would have been objectively difficult to achieve even with the right investment and strong execution,” Lyons said on a conference call.
i honestly think they wanted it to go down so Mike can bring it back up
Yes, a company can report higher revenue in the short term when it cuts costs by laying off employees and reducing spending. This situation unfolds primarily due to the following factors:
Reduction in Operating Costs: Layoffs lead to lower salaries and benefits expenses, which can significantly reduce overall operating costs.
Improved Profitability: With lower expenses, even if revenue remains stable or declines slightly, profit margins can increase, leading to better overall profitability metrics.
Short-Term Financial Metrics
Earnings Reports: In earnings reports, companies often highlight profit rather than revenue growth to showcase financial health. Cost reductions can boost net income, making it appear more favorable to investors.
Market Reactions: Often, the market reacts positively to cost-cutting measures, seeing them as responsible management decisions, even if they may harm sustainability in the long run.
To the post who said Frank grew revenue by laying off employees and reducing expense...ahhh you can't grow revenue by cutting expense.
I left this dumpster fire, so someone needs to give me a summary of the all-hands.
It’s going to be hilarious, sad I’m missing it.
We miss you Jeff Yabuki!!! <3
Frank pulled off the largest con game in the history of Fiserv. He artificially inflated stock price by promising revenue targets that were not really possible, but sustained in the short term by laying off employees and cutting spending to produce the revenue target desired.
It was stupid, destructive, and unsustainable dubious "strategy", but great for a guy exiting for another gig.
The important thing is that we have a restoration of sanity and we are back on NASDAQ instead of Frank's infatuation with ringing the bell at NYSE from his manhattan office.
Fiserv can now return to a healthy, long term growth company with a steady and growing stock to match. The pain is real, but it's necessary for long term growth.
I would recommend visiting each one of your clients at least 4 times per week now. If you aren't on a flight 4 times per week minimum you are doing it wrong. The way to win is to be "in the clients office"
Ate u d-mb? This is reality Frank was a con man
Probably doesn't help taking over a company with years of lies
Probably doesn't help they threw millions at "bug bash" all year.