Oct 22 (Reuters) - Fiserv ( FI ) raised the lower end of

its annual profit forecast on Tuesday, encouraged by strong

spending that has helped it post higher-than-expected earnings

in each quarter this year.

WHY IT'S IMPORTANT

The company's results can be a barometer for consumers'

financial health. The fees it collects from banks, small

businesses, merchants and other customers for processing

transactions and payments, are closely tied to spending trends.

CONTEXT

U.S. consumers have been on solid ground even amid elevated

interest rates, and the beginning of a rate-cut campaign could

ease pressure further. However, there have been some signs of a

pullback from non-essential purchases.

Fiserv ( FI ) also took a $570 million non-cash impairment charge

in the third quarter, primarily related to its investment in

Wells Fargo Merchant Services, a joint venture with Wells Fargo ( WFC )

that is expected to expire on April 1 next year.

BY THE NUMBERS

Profit attributable to Fiserv ( FI ) plunged 41% to $564 million

for the three months ended Sept. 30.

But excluding one-time costs, the Milwaukee, Wisconsin-based

company earned $2.30 per share, higher than expectations of

$2.26 per share, according to estimates compiled by LSEG.

Fiserv ( FI ) expects 2024 earnings per share between $8.73 and

$8.80, on an adjusted basis, versus the $8.65 to $8.80 range it

had forecast earlier.

KEY QUOTE

"This performance is anchored in the privileged position we

hold at the crossroads of two ecosystems - merchants and

financial institutions," CEO Frank Bisignano said.

MARKET REACTION

Shares dipped 0.6% before the open. So far this year, they

have climbed 48% versus a 25% rise for the S&P 500 financials

index.

(Reporting by Niket Nishant in Bengaluru)