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FIS shares drop after weak Q1 guidance despite revenue match

EditorRachael Rajan
Published 02/26/2024, 08:16 AM
Updated 02/26/2024, 08:16 AM
© Reuters.

JACKSONVILLE, Fla. - Fidelity National Information Services, Inc. (NYSE:FIS) reported fourth-quarter earnings that slightly missed analyst expectations, while revenues aligned with consensus estimates. The global leader in financial services technology announced an adjusted EPS of $0.94, which was $0.01 short of the analyst estimate of $0.95. Revenue for the quarter was reported at $2.51 billion, meeting the consensus estimate of $2.52 billion.

Following the earnings release and the announcement of future expectations, FIS shares initially experienced an over 3% drop in premarket trading, indicating a negative market response to the weak Q1 guidance. However, the stock is trading flat as of this writing.

The company's guidance for the first quarter of 2024 indicated weaker performance than analysts anticipated, with an EPS forecast of $0.94 to $0.97 against a consensus of $1.01. Revenue projections for Q1 2024 also fell short, with FIS expecting $2.43 to $2.45 billion, while analysts had estimated $2.46 billion. For the full year 2024, FIS provided an EPS guidance range of $4.66 to $4.76, which is above the consensus of $4.61. The revenue guidance for FY2024 is set between $10.1 and $10.15 billion, compared to the analyst consensus of $10.13 billion.

FIS CEO and President Stephanie Ferris commented on the results, "Our 2023 results and our 2024 outlook reflect the continued positive momentum of the business as we delivered on our financial commitments for the fourth consecutive quarter and successfully closed the Worldpay transaction." She expressed confidence in the company's performance, highlighting the increased share repurchase goal, which has been raised from $3.5 billion to $4.0 billion by the end of 2024, with $510 million already repurchased in the fourth quarter of 2023.

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The company also noted that it had outperformed its Future Forward expectations in 2023 and is raising its operational expense savings goal for 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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